Gold Price Analysis: XAU/USD bulls await clear break of $1,981
- Gold prices struggle to keep recoveries following second failure to cross $1,981.
- RSI conditions suggest cooling of the bull-run for a while.
- 100-HMA, weekly ascending trend line offers immediate strong support.
Gold prices recede to $1,968.60 amid the early Asian session on Thursday. The yellow metal recently surged to $1,980.89 but couldn’t refresh the record top of $1,981.34, making a ‘double-top’ around $1,981.
With the RSI conditions challenging further upside, coupled with the strong resistance near $1,981, sellers may sneak in for short-term gains. In doing so, a confluence of 100-HMA and an upward sloping trend line from July 22, close to $1,933/32, becomes important.
If the bears manage to snatch back the rein and dominate below $1,932, the $1,900 threshold and 200-HMA level of $1,886 will be on their radars.
Meanwhile, an upside clearance of $1,981 will quickly renew the north-run targeting $2,000 psychological magnet.
Further, 61.8% Fibonacci retracement of the precious metal’s rally from mid-2001 to late-2011, around $2,077, could lure the optimists afterward.
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.
