Gold Price Analysis: XAU/USD's love affair with bullish trendline continues


  • Gold trades around a multi-month bullish trendline for the ninth straight day. 
  • The Sept. 8 low is now the level to beat for the bears. 

Gold is flirting with a six-month-rising trendline for the ninth consecutive trading day. 

At press time, the metal is trading just short of the ascending trendline at $1,956. The safe-haven metal hit a low of $1,906.80 on Sept. 8 and rose to a high of $1,972 on Tuesday. 

However, throughout the recovery rally, the bulls have persistently struggled to establish a foothold above the trendline hurdle. Meanwhile, bears have had a tough capitalizing on the occasional bull failure at the trendline hurdle. For instance, the ascending trendline was breached on Sept. 8 and Sept. 11. However, on both occasions, the follow-through was bullish. 

As such, the trendline is no longer relevant for technical traders, and key levels to watch out for are the Sept. 15 high of $1,972 and Sept. 8 low of $1,906.80. 

A close above $1,972 would invalidate the bearish lower highs on the daily chart and signal a broader bull trend revival. Alternatively, a close below  $1,906 would imply a bearish reversal. 

Daily chart

Trend: Neutral

Technical levels

XAU/USD

Overview
Today last price 1955.4
Today Daily Change 1.17
Today Daily Change % 0.06
Today daily open 1954.23
 
Trends
Daily SMA20 1943.52
Daily SMA50 1926.25
Daily SMA100 1828.95
Daily SMA200 1707.49
 
Levels
Previous Daily High 1972.23
Previous Daily Low 1948.48
Previous Weekly High 1966.54
Previous Weekly Low 1906.62
Previous Monthly High 2075.32
Previous Monthly Low 1863.24
Daily Fibonacci 38.2% 1957.55
Daily Fibonacci 61.8% 1963.16
Daily Pivot Point S1 1944.4
Daily Pivot Point S2 1934.56
Daily Pivot Point S3 1920.65
Daily Pivot Point R1 1968.15
Daily Pivot Point R2 1982.06
Daily Pivot Point R3 1991.9

 

 

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