Gold Price Analysis: Acceptance above $2050 critical to revive XAU/USD’s uptrend


  • Gold’s record-breaking rally could resume on a sustained move above $2050.
  • RSI on 4H chart stays in the bullish territory, pointing to the upside.
  • XAU bulls to buy the dips around $2010 in the week ahead?

The overbought conditions and price-Relative Strength Index (RSI) bearish divergence on gold’s (XAU/USD) daily chart prompted a sharp $60 correction from record highs of $2075 on Friday.

The yellow metal managed to recover from the two-day lows of $2015 but settled the week below the psychological $2050 level. This could warrant come caution for the bulls in the week ahead.

However, the Relative Strength Index (RSI) on the four-hour (4H) chart remains tilted to the upside above the midline at 54 levels, keeping the buyers hopeful.

The uptrend is likely to regain traction should the bulls fight back control over the upward-sloping 21-Simple Moving Average (SMA) at $2040.

Above that level, the $2050 level will test the bulls’ commitment. The next resistance awaits at $2065 levels, as the life-time highs and beyond remain on the buyers’ radars.

Alternatively, if the rebound loses steam, the rising trendline support at $2010 could be put to test. A breach of the latter will validate the rising channel formation calling for the extension of Friday’s corrective declines.

The bullish 50-SMA at $1998 could offer immediate support while closing below the 100-SMA at $1933 could possibly dim prospects for fresh upside.

Gold: XAU/USD 4-hour chart

fxsoriginal

Gold: XAU/USD additional levels to watch

 

XAU/USD

Overview
Today last price 2035.16
Today Daily Change 0.00
Today Daily Change % 0.00
Today daily open 2035.16
 
Trends
Daily SMA20 1914.43
Daily SMA50 1815.93
Daily SMA100 1750.33
Daily SMA200 1642.89
 
Levels
Previous Daily High 2075.32
Previous Daily Low 2015.68
Previous Weekly High 2075.32
Previous Weekly Low 1960.67
Previous Monthly High 1984.8
Previous Monthly Low 1757.7
Daily Fibonacci 38.2% 2038.46
Daily Fibonacci 61.8% 2052.54
Daily Pivot Point S1 2008.79
Daily Pivot Point S2 1982.41
Daily Pivot Point S3 1949.15
Daily Pivot Point R1 2068.43
Daily Pivot Point R2 2101.69
Daily Pivot Point R3 2128.07

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD trades at fresh September lows

Risk-aversion is the main theme this Monday, amid resurgent coronavirus cases in the Old Continent and the announcement of  new lockdowns. ECB’s Lagarde said the economic recovery in the EU is “very uncertain, uneven and incomplete.”

EUR/USD News

GBP/USD extends slump sub-1.2800

The Pound plunged on a dismal market mood, as PM Johnson acknowledged the kingdom is undergoing a second coronavirus wave. GBP/USD trades at one-week lows around 1.2800.

GBP/USD News

XAU/USD dives to sub-$1900 levels, six-week lows

Gold extended last week's rejection slide from a short-term descending trend-line resistance and tumbled to six-week lows during the early North American session.

Gold News

Bitcoin needs to defend critical support level at $10,600

Bitcoin was trading inside an ascending triangle pattern between September 3 and September 15, which is created when the price establishes higher lows and a horizontal trendline around the swing highs. 

Read more

WTI plummets to $39, down more than 4%

Crude oil prices closed the previous week sharply higher but erased a large portion of those gains on Monday. As of writing, the barrel of West Texas Intermediate was down 4.2%, the biggest daily percentage decline in nearly two weeks, at $39.15.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures