Gold Price Analysis: XAU/USD struggles to move back above 100-hour SMA

  • Gold has been consolidating in a range over the past one week or so.
  • The intraday set-up supports prospects for a retest of $1937-35 support.
  • Move beyond 100-hour SMA should pave the way for additional gains.

Gold regained some positive traction on the last trading day of the week and recovered a part of the previous day's losses to over one-week lows. The commodity held on to its intraday gains and traded above the $1950 level through the mid-European session.

Looking at the technical picture, the commodity has been oscillating in a range held over the past one week or so. The range-bound trading action constituted the formation of a rectangle on short-term charts, indicating a tug of war between bulls and bears.

Adding to this, neutral technical indicators on 4-hourly/daily charts haven't been supportive of any firm direction. The technical set-up makes it prudent to wait for a sustained break through the trading range before positioning for the near-term trajectory.

Meanwhile, the yellow metal has now found acceptance below 100-hour SMA, which, in turn, favours intraday bearish traders. Hence, a slide back towards the trading range support, around the $1937-35 region, now looks a distinct possibility.

Conversely, some follow-through buying beyond 100-hour SMA has the potential to lift the commodity back towards the $1972-74 supply zone. A convincing break through the mentioned barrier will set the stage for a move towards the key $2000 psychological mark.

Gold 1-hourly chart


Technical levels to watch


Today last price 1949.74
Today Daily Change 5.86
Today Daily Change % 0.30
Today daily open 1943.88
Daily SMA20 1944.86
Daily SMA50 1932.04
Daily SMA100 1833.98
Daily SMA200 1712.31
Previous Daily High 1961.04
Previous Daily Low 1932.88
Previous Weekly High 1966.54
Previous Weekly Low 1906.62
Previous Monthly High 2075.32
Previous Monthly Low 1863.24
Daily Fibonacci 38.2% 1943.64
Daily Fibonacci 61.8% 1950.28
Daily Pivot Point S1 1930.83
Daily Pivot Point S2 1917.77
Daily Pivot Point S3 1902.67
Daily Pivot Point R1 1958.99
Daily Pivot Point R2 1974.09
Daily Pivot Point R3 1987.15



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