Gold Price Analysis: XAU/USD could extend rebound with daily close above $1,900

  • Gold closed last two days of the week in the positive territory.
  • XAU/USD lost more than 3% for the week.
  • Gold could continue to push higher with a daily close above $1,900.

The XAU/USD pair closed the last two days of the week in the positive territory but closed below $1,900. On a weekly basis, the pair erased more than 3%.

Gold technical outlook

Despite the recovery witnessed in the second half of the week, the Relative Strength Index (RSI) indicator on the daily chart stays below 50, pointing out to a neutral outlook in the near-term. On the upside, $1,900 (50-day SMA, 100-day SMA, Fibonacci 50% retracement of the June-August uptrend) aligns as a key resistance. With a daily close above that level, gold could target $1,930 (Fibonacci 38.2% retracement). 

On the other hand, strong support seems to have formed at $1,850 (Fibonacci 61.8% retracement). If the price drops below that level and flips it as a resistance, $1,820 (former static resistance) could be targeted.

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