Gold Price Forecast: Bulls defying a critical Fibonacci resistance level
XAU/USD Current price: $1,825.30
- Market players patiently await US inflation data to decide directional bets.
- US government bond yields are on the run, but demand for the greenback remains subdued.
- XAU/USD is poised to retest the yearly high at $1,853.83 a troy ounce.
Spot gold hit its highest in two weeks, now holding near an intraday top of $1,828.37 a troy ounce. The American currency remains on the back foot, despite getting a temporal boost from rising US government bond yields, as that on the 10-year Treasury note surged to 1.97%. Meanwhile, Wall Street holds on to substantial intraday gains.
Market players patiently await an update on US inflation, as the country will publish the January Consumer Inflation Index figures on Thursday. The macroeconomic calendar had little to offer so far this week, leaving investors without a trigger.
Gold price short-term technical outlook
The XAU/USD pair trades around the 61.8% retracement of the latest daily slide. From a technical point of view, the bright metal has room to extend its gains. The daily chart shows that it’s currently developing above all of its moving averages, while the RSI indicator aims higher at around 55. However, the Momentum indicator remains within neutral readings, suggesting some prevalent caution among speculative interest.
The 4-hour chart shows that gold stands above all of its moving averages, with the 20 SMA accelerating north but still below the longer ones. Meanwhile, the Momentum indicator loses strength but remains within positive levels. On the other hand, the RSI indicator heads firmly higher, approaching overbought readings. XAU/USD could retest 2022 high at $1,853.85 on a clear break above the immediate near-term resistance at 1,831.70.
Support levels: 1,818.50 1,808.10 1,797.45
Resistance levels: 1,831.70 1,842.90 1,853.85
Author
Valeria Bednarik
FXStreet
Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.
