XAU/USD technical analysis: Gold needs a break above the $1,298 resistance for more gains

Gold price traded higher recently and broke the $1,295 resistance zone against the US Dollar. The price traded close to the $1,300 level before sellers appeared near the $1,297 and $1,298 resistance levels.

A high was formed near $1,297 on FXOpen and later the price declined below $1,295. Sellers pushed the price below the 50% Fib retracement level of the last leg from the $1,280 low to $1,297 high. However, the decline found a strong support near the $1,286 level.

Besides, the 61.8% Fib retracement level of the last leg from the $1,280 low to $1,297 high also acted as a support. The price bounced back above $1,290 and the 50 hourly simple moving average.

The current price action is positive and it seems like there could be more gains above the $1,292 and $1,295 resistance levels. However, a proper break above the $1,298 resistance is needed for more gains in the near term.

On the downside, an initial support is at $1,290, followed $1,288. Moreover, there is a major bullish trend line in place with support at $1,282 on the hourly chart of gold. Overall, dips remain supported in gold and the price may soon trade towards $1,298.