Gold Price Analysis: XAU/USD set to test 7-year highs amid lack of healthy resistance levels

Gold looks to break Friday’s range trade to the upside.
Falling trendline hurdle at $1776.60 is the level to beat for the bulls.
XAU/USD closed above all major hourly Simple Moving Averages (HMA).

Dhwani Mehta FXStreet

Following consolidation in a $5 range on holiday-thinned Friday, Gold prices (XAU/USD) are poised for another leg higher after falling off the seven-year tops of $1789.28 last Wednesday.

With looming concerns over a surge in the coronavirus cases worldwide and economic recovery unlikely to wane, gold could likely continue drawing the haven bids in the near-tern.

Although the ongoing optimism on the global stocks could slowdown the yellow metal’s advances towards the $1800 mark.

Technically, looking at the hourly chart, gold is set to break through the falling trendline resistance aligned at $1776.60, also where Friday’s high converges.

Acceptance above the latter could see a test of the multi-year high. The hourly Relative Strength Index (RSI) points northwards at 56.05, hinting at more room for the upside.

Also, the fact that the price closed above the 21-HMA at $1775.45 adds credence to the near-term bullish outlook. Its worth noting that the XAU bulls have regained ground above all the major HMAs.

On the flip side, the immediate downside could be capped by the 21-HMA, below which the next support awaits at the horizontal 100-HMA at $1774.64.

Further south, the 50-HMA at $1772.93 is likely to offer some temporary reprieve to the bulls while the 200-HMA at $1770.36 is the level to beat for the bears in the coming days.

All in all, the path of least resistance appears to the upside amid a lack of healthy resistance levels.

Gold: Hourly chart

Gold: Additional levels

XAU/USD

Overview
Today last price	1776.19
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	1776.19

Trends
Daily SMA20	1747.5
Daily SMA50	1728.5
Daily SMA100	1678.16
Daily SMA200	1593.25

Levels
Previous Daily High	1777.21
Previous Daily Low	1772.76
Previous Weekly High	1789.28
Previous Weekly Low	1757.7
Previous Monthly High	1785.91
Previous Monthly Low	1670.76
Daily Fibonacci 38.2%	1775.51
Daily Fibonacci 61.8%	1774.46
Daily Pivot Point S1	1773.56
Daily Pivot Point S2	1770.94
Daily Pivot Point S3	1769.11
Daily Pivot Point R1	1778.01
Daily Pivot Point R2	1779.84
Daily Pivot Point R3	1782.46

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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