Gold battles with 50-day SMA [Video]

Gold rebounds strongly from its 2024 low.
Challenges 50-day SMA and ascending trendline.
Momentum indicators turn neutral-to-positive.

Stefanos Oikonomidis XM

Gold has been regaining ground in the past few sessions, following its bounce off the 2024 bottom of 1,984. Although the price has recouped a significant part of its losses, it has currently stalled at the congested region that includes the 50-day simple moving average (SMA) and the ascending trendline that connects the higher lows since December.

Should bullish pressures persist, bullion could challenge the 2,044 hurdle, which acted as resistance both in December and February. Failing to halt there, the price may advance towards the February high of 2,065. An upside violation of that zone could open the door for the crucial 2,079-2,088 range.

Alternatively, if the price reverses back lower, the January support zones of 2,008 and 2,001 could act as the first lines of defence. Further declines might then cease around the 2024 bottom of 1,984. Even lower, the December low of 1,973 could provide downside protection.

In brief, gold has been in a recovery mode in the past two weeks, but the 50-day SMA has been repeatedly curbing its upside. Hence, a break above the latter is needed for the price to extend its rebound towards all-time highs.

Author

Stefanos Oikonomidis

Stefanos joined XM as a Junior Investment Analyst in September 2021. He conducts daily market research on the currency, commodity and equity markets, from a fundamental and a technical perspective.

EUR/USD makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.