Gold Technical Analysis: Decelerating RSI and pullback from resistance-line highlights $1296 trend-line support

Gold daily chart

  • Gold prices trade around $1310 by the end of Tuesday’s trading.
  • The yellow metal maintains its early-month pullback from a downward sloping trend-line connecting 2018 highs with 14-day relative strength index (RSI) decelerating since the start of February.
  • As a result, an ascending trend-line stretched from late November, at $1296, is likely gaining sellers’ attention.
  • In case the quote drops under $1296 on a daily closing basis, the 61.8% Fibonacci retracement of its 2018 downturn near $1287.30 and the 50-day simple moving average at $1279 could become Bears’ favorites.
  • Meanwhile $1316 and the aforementioned trend-line at $1325 can keep limiting the bullion’s near term upside.
  • Should there be additional upside past $1325, $1333 and $1341 may appear on the chart.

Gold 4-Hour chart

  • Short-term symmetrical triangle confines Gold moves between $1305 and $1314.30 on H4 chart.
  • Latest U-turn from the pattern resistance shifts market attention to the $1305 support-line, a break of which can drag the quote to $1300 and then to a horizontal-area connecting early-January highs near $1297.
  • On the upside clearance of $1305 could trigger the recovery to $1317 whereas $1323 and January high near $1326 might please buyers afterward.

Gold hourly chart

  • The XAU/USD’s refrain to rise past immediate trend-line resistance, at $1314.50, shows its weakness that can fetch it to $1309 and $1305 re-test while $1302.70 and 61.8% Fibonacci Expansion of its February month moves, at $1301, can play its role of supports then after.
  • Alternatively, $1312.80 seem nearby resistance ahead of aiming the $1314.50 but a successful break of $1314.50 might not hesitate to recall $1317 as a quote.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD struggling at the lows ahead of US GDP

EUR/USD is trading in the low 1.1100s, consolidating its losses. Markets are stalling ahead of the all-important US GDP report which carries high expectations. Some suspect a "sell the fact" response in reaction to an OK number.


GBP/USD recaptures 1.2900 amid the Brexit impasse, ahead of US GDP

GBP/USD is trading slightly above 1.2900, recovering the lost ground after hitting two-month lows. The Brexit impasse weighs as the main parties have not made progress. The anticipation to US GDP limits movements.


USD/JPY oscillates in a range above mid-111.00s, key US GDP report awaited

The USD/JPY pair failed to capitalize on the intraday bounce and quickly retreated around 15-20 pips from daily tops touched during the Asian session.


US First Quarter GDP Preview: Reasons to be cheerful

US economic growth forecast to be stable in the first quarter. Improved consumer attitudes and retail sales give reason for optimism. Labor market key to economic growth.

Read more

Gold climbs to 1-1/2 week tops, back above $1280 level ahead of US GDP

Gold edged higher on the last trading day of the week and jumped back above $1280 level, just above over one-week tops set in the previous session.

Gold News