Gold Price Analysis: XAU/USD battles 200-SMA on 4H chart, US stimulus, Fed eyed


  • Gold surges after a descending triangle breakout on the 4H chart.
  • 200-SMA challenges bull’s commitment above $1850.
  •  Markets await the Fed and a likely US fiscal stimulus deal.

Gold (XAU/USD) consolidates Tuesday’s surge, trading close to the weekly tops just below the $1860 barrier.

The yellow metal rallied nearly 1% a day before and now looks to build on the upside amid rising expectations that the US lawmakers will clinch the much-awaited coronavirus relief aid package.

However, the XAU bulls remain mindful of the Fed decision due later on Wednesday, with likely upbeat projections from the American central bank seen hurting the sentiment around gold.

From a technical perspective, the four-hour (4H) chart shows that gold is struggling to recapture the horizontal 200-simple moving average (SMA) at $1859.

Acceptance above the latter could prompt the bulls to resume its upbeat momentum, in the wake of a descending triangle breakout confirmed early Tuesday.

Gold Price Chart: Four-hour 

The next relevant resistance is seen at $1875, the December 8 high. The bulls could then eye a test of the $1900 mark.

The Relative Strength Index (RSI) sits beneath the overbought territory, near 67.00, suggesting that there is scope for further upside.

On the flip side, the horizontal 50-SMA at $1845 could be back on the sellers’ radars. That level was the previous crucial resistance.

Further south, the 21-SMA support at $1840 could likely be probed.

Gold Additional levels

XAU/USD

Overview
Today last price 1856.10
Today Daily Change 1.57
Today Daily Change % 0.08
Today daily open 1854.52
 
Trends
Daily SMA20 1834.31
Daily SMA50 1872.81
Daily SMA100 1908.08
Daily SMA200 1810.98
 
Levels
Previous Daily High 1855.47
Previous Daily Low 1825.59
Previous Weekly High 1875.34
Previous Weekly Low 1822.22
Previous Monthly High 1965.58
Previous Monthly Low 1764.6
Daily Fibonacci 38.2% 1844.06
Daily Fibonacci 61.8% 1837
Daily Pivot Point S1 1834.92
Daily Pivot Point S2 1815.31
Daily Pivot Point S3 1805.04
Daily Pivot Point R1 1864.8
Daily Pivot Point R2 1875.07
Daily Pivot Point R3 1894.68

 

 

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