Gold Price Analysis: XAU/USD bulls await a sustained move beyond descending triangle resistance


  • Gold built on the previous day’s positive move and gained some follow-through traction on Tuesday.
  • The set-up seems tilted firmly in favour of bullish trades and supports prospects for additional gains.

Gold edged higher through the mid-European session and climbed to two-week tops, around the $1972 region in the last hour.

Bulls are now looking to build on the momentum further beyond an important confluence resistance – comprising of a near one-month-old descending trend-line and 50% Fibonacci level of the $2075-$1863 corrective slide.

The mentioned trend-line, along with a strong horizontal support near the $1900 mark, constituted the formation of a descending triangle. A convincing breakthrough will set the stage for a further near-term appreciating move.

The constructive outlook is further reinforced by the prevalent USD selling bias. This coupled with the fact that oscillators on hourly charts maintained their bullish bias and have again started gaining traction on the daily chart support prospects for additional gains.

Hence, a subsequent positive move towards 61.8% Fibo. level, around the $1995 region, now looks a distinct possibility. Some follow-through buying beyond the key $2000 psychological mark should pave the way for a move towards the next major hurdle near the $2015 horizontal level.

On the flip side, the $1960-59 region now seems to protect the immediate downside, below which the commodity could slide back towards the 38.2% Fibo. level, around the $1942-40 area. Failure to defend the support levels might turn the metal vulnerable to slide further.

Bearish might then aim to test the $1920-15 intermediate support before eventually dragging the commodity back towards the $1900 strong support.

Gold 4-hourly chart

fxsoriginal

Technical levels to watch

XAU/USD

Overview
Today last price 1970.43
Today Daily Change 13.63
Today Daily Change % 0.70
Today daily open 1956.8
 
Trends
Daily SMA20 1945.93
Daily SMA50 1923.08
Daily SMA100 1826.49
Daily SMA200 1705.03
 
Levels
Previous Daily High 1962.6
Previous Daily Low 1937.1
Previous Weekly High 1966.54
Previous Weekly Low 1906.62
Previous Monthly High 2075.32
Previous Monthly Low 1863.24
Daily Fibonacci 38.2% 1952.86
Daily Fibonacci 61.8% 1946.84
Daily Pivot Point S1 1941.73
Daily Pivot Point S2 1926.67
Daily Pivot Point S3 1916.23
Daily Pivot Point R1 1967.23
Daily Pivot Point R2 1977.67
Daily Pivot Point R3 1992.73

 

 

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