Gold Price Analysis: Bullish flag keeps XAU/USD buyers hopeful above $1,700

Gold stays depressed around intraday low, trims biggest gains since January.
Receding strength of bearish MACD, sustained trading beyond 200-SMA favor buyers.
Buyers need to stay cautious despite confirming the bullish chart pattern unless crossing $1,765.

Anil Panchal FXStreet

Gold remains pressured around $1,713, down 0.18% intraday, ahead of Wednesday’s European session. Although the bullion fades upside momentum after the heaviest run-up in two months, it does portray a bullish chart formation, called bullish flag, on the 30-minutes (30M).

Not only the bullish chart pattern but the commodity’s successful trading above 200-SMA as well as receding strength of the bearish MACD also favor gold buyers.

However, a clear upside break of $1,720 becomes necessary before directing the bulls towards confronting November 2020 lows near $1,765. During the rise, $1,740 can offer an intermediate halt.

Meanwhile, a downside break below the stated flag’s support, at $1,710 now, will have to slip beneath the 200-SMA level of $1,702, as well as the $1,700 threshold, to confirm refreshing the latest multi-day low around $1,676.

Overall, gold consolidates recent gains ahead of the key US stimulus decision but the bullish chart pattern keeps the case interesting.

Gold 30-minute chart

Trend: Further recovery expected

additional important levels

Overview
Today last price	1712.71
Today Daily Change	-3.53
Today Daily Change %	-0.21%
Today daily open	1716.24

Trends
Daily SMA20	1765.57
Daily SMA50	1822.03
Daily SMA100	1844.46
Daily SMA200	1859.76

Levels
Previous Daily High	1720.7
Previous Daily Low	1680.24
Previous Weekly High	1759.98
Previous Weekly Low	1687.37
Previous Monthly High	1871.9
Previous Monthly Low	1717.24
Daily Fibonacci 38.2%	1705.24
Daily Fibonacci 61.8%	1695.7
Daily Pivot Point S1	1690.75
Daily Pivot Point S2	1665.27
Daily Pivot Point S3	1650.29
Daily Pivot Point R1	1731.21
Daily Pivot Point R2	1746.19
Daily Pivot Point R3	1771.67

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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