Gold Price Analysis: XAU/USD climbs above key $1,800 resistance

XAU/USD is trading above the 200-day SMA on Tuesday.
Broad-based USD weakness is helping XAU/USD push higher.
Buyers could remain in control of gold if it manages to close above $1,800.

Eren Sengezer FXStreet

The XAU/USD pair slumped to its lowest level since early July at $1,764 on Monday but staged a decisive rebound on Tuesday. As of writing, gold was trading at $1,813, gaining 2.05% on a daily basis. In the absence of significant fundamental drivers, the USD's market valuation seems to be impacting the pair's movements. At the moment, the US Dollar Index is down 0.23% on the day at 91.65, reflecting the broad selling pressure surrounding the greenback.

XAU/USD technical outlook

With Tuesday's upsurge, XAU/USD rose above the key 200-day SMA, which is currently located near the psychological level of $1,800. A daily close above this level could attract more buyers. However, the Relative Strength Index (RSI) indicator on the same chart is still below 50, suggesting that this move could be the correction of the 6% decline witnessed in the last 10 days.

On the upside, a static resistance is located at $1,815 ahead of $1,840 (November 24 high) and $1,850 (Fibonacci 61.8% retracement of June-August rally). Supports, on the other hand, are located at $1,800 (psychological level/200-day SMA) and $1,765 (November 30 low).

Gold daily chart

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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