Gold Price Analysis: XAU/USD eases from intraday top but bulls stay hopeful above 200-SMA
- Gold takes a U-turn after refreshing intraday high.
- MACD teases bulls as the quote stays above 200-SMA.
- Seven-week-old horizontal area tests bull’s commitment.
Gold trims intraday gains after reversing from $1,749.44, around $1,746 by the press time, amid Wednesday’s Asian session.
Although 50% Fibonacci retracement of late February to early March downside clutches the yellow metal, a successful reversal from 200-SMA and MACD divergence in favor of buyers signals the bullion’s further upside.
However, a clear break above $1,755-57 area comprising multiple levels marked since February 26 becomes necessary for the precious metal buyers to keep the reins.
During the pullback, $1,735 and 38.2% Fibonacci retracement level of $1,730 can entertain short-term sellers ahead of testing them with a 200-SMA level of $1,726.
Overall, gold is consolidation early 2021 losses but the recent building of upside momentum gains the market’s attention
Gold four-hour chart
Trend: Further recovery expected
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.
