Gold Price Analysis: XAU/USD bounces off $1,943 immediate support confluence
- Gold prices print mild gains after stepping back from one-week high the previous day.
- 50-HMA, ascending trend line from Tuesday restricts immediate downside.
- 61.8% of Fibonacci retracement guards immediate upside ahead of the weekly top.
Gold rises to $1,949, up 0.18% on a day, amid the initial hour of Tokyo open on Friday. In doing so, the yellow metal recovers Thursday’s losses while stepping back from a short-term key support confluence near $1,943.
With the normal RSI conditions favoring the bullion’s bounce, 61.8% Fibonacci retracement of September 01-08 fall, around $1,960, is likely luring the intraday buyers before the previous day’s peak, also the weekly top, surrounding $1,966/67.
During the quote’s sustained run-up past-$1,967, bulls will have to cross $1,971 and $1,974 intermediate halts before challenging the monthly high of $1,992.42.
Meanwhile, a downside break of $1,943, will be questioned by the 100-HMA level of $1,936.
Given the commodity’s sustained weakness past-$1,936, sellers can refresh the monthly low $1,906 with the $1,900 threshold on the radar.
Gold hourly chart
Trend: Pullback 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.
