Gold Price Analysis: XAU/USD to test key 50-DMA hurdle on its way to $2000

Gold poised for a rally towards the $2000 mark in the week ahead.
Bulls charted a classic falling wedge breakdown on the daily chart.
A break above 50-DMA resistance is critical to take on the further upside.

Dhwani Mehta FXStreet

Following the settlement at two-week highs of $1930, Gold (XAU/USD) remains poised to extend the bullish momentum into a fresh week, courtesy of a classic technical breakout on the daily chart.

On Friday, the metal finally delivered a daily closing above the critical upside barrier at $1911, the confluence of the 21-daily moving average (DMA) and falling trendline resistance, yielding a falling wedge breakdown.

The technical breakout added credence to the bullish reversal from the two-month lows of $1849, opening doors for a retest of the $2000 mark in the coming week.

However, it's critical for the bulls to take out the fierce 50-DMA hurdle $1939.50. The 14-day Relative Strength Index (RSI) pierced above the midline, pointing north at 54.55, indicative of more scope to the upside.

Alternatively, any profit-taking declines could be limited by the initial support at the abovementioned resistance-turned-support at $1911, below which the 100-DMA cap at $1862 could come back into play ahead of the two-month troughs.

All in all, the path of least resistance is to the upside.

Gold: Daily chart

Gold Additional levels

XAU/USD

Overview
Today last price	1930.25
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	1930.25

Trends
Daily SMA20	1907.07
Daily SMA50	1939.5
Daily SMA100	1862.34
Daily SMA200	1744.38

Levels
Previous Daily High	1930.62
Previous Daily Low	1893.72
Previous Weekly High	1930.62
Previous Weekly Low	1873.01
Previous Monthly High	1992.42
Previous Monthly Low	1848.82
Daily Fibonacci 38.2%	1916.52
Daily Fibonacci 61.8%	1907.82
Daily Pivot Point S1	1905.77
Daily Pivot Point S2	1881.3
Daily Pivot Point S3	1868.87
Daily Pivot Point R1	1942.67
Daily Pivot Point R2	1955.1
Daily Pivot Point R3	1979.57

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.

GBP/USD advaces beyond 1.3450 after BoE decision, US Q2 GDP

GBP/USD gains positive momentum on Thursday, surpassing 1.3450 and trading at fresh multi-week highs. The Bank of England decided to maintain the benchmark rate unchanged at 3.75%. The MPC voted 6-3 to keep rates on hold, with the 3 dissenters favoring a rate hike. US Q2 GDP missing expectations helped the pair advance, while renewed US Dollar weakness across the FX board pushed the pair further up ahead of the monthly close.

EUR/USD confortable around 1.1530, highest in six weeks

The EUR/USD pair trades around 1.1530 in the American session on Thursday, reaching fresh six-week highs. The US Dollar is in sell-off mode, with multiple factors weighing on the American currency. Not only did the Federal Reserve vote divided to keep rates on hold on Wednesday, creating doubts about a September hike, but US Q2 GDP missed expectations. A suspected JPY intervention adds pressure on the Greenback.

Gold recovers the $4,100 level as US Dollar weakens further

Gold trades just above $4,100 amid a US Dollar sell-off. The Greenback enjoyed some near-term demand following Wednesday's post-FOMC downfall, but was unable to retain its gains. The preliminary estimate of the US Q2 GDP showed the economy grew at an annual rate of 1.5%, missing the market's expectations of 2.1%.

Ripple Price Forecast: XRP builds recovery momentum as whales increase exposure

Ripple (XRP) rises toward the pivotal $1.10 resistance on Thursday, marking three consecutive days of gains. This neutral-to-slightly bullish outlook follows the Federal Reserve (Fed) decision to leave interest rates unchanged in the 3.50%-3.75% range.

The FOMC: Rates left on hold; dollar falls as Warsh fails to vote for hike

The Fed kept interest rates on hold today, defying a 30% chance in the Fed Funds Futures market that rates would rise. The Committee voted 9-3 to keep rates on hold, with governors Kashkari, Hammack and Logan all voting to hike rates due to concerns about inflation. The immediate market reaction has been a sharp drop in the USD on a broad basis.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.