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.

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

 

 

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