Gold Technical Outlook: XAU/USD Bulls Fight to Hold Breakout Support After 7% Rally
Gold's sharp recovery has stalled beneath major resistance, with the next reaction likely to determine whether a larger bullish reversal can develop.
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Gold Technical Outlook: XAU/USD Multi-Timeframe Analysis
Gold price technical analysis shows gold breaking out of its September downtrend after a 17.6% slide, as momentum divergence tests the rebound. Michael Boutros, StoneX Media Senior Market Analyst, walks through gold on the weekly, daily and four-hour charts, from the trendline break that fueled the decline to the Fibonacci retracements that frame the recovery. Gold fell in eight of the past 10 weeks after the August high, as the break of a three-point trendline accelerated the decline. Gold broke out of the descending channel that defined the September downtrend and pushed back above the 23.6% Fibonacci retracement. On the four-hour chart, price set a higher high that the momentum oscillator failed to confirm, a divergence that leaves room for a pullback. U.S. Consumer Price Index and Producer Price Index data add event risk, as strong nonfarm payrolls keep the Federal Reserve focused on inflation and Treasury yields in view.
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--- Written by Michael Boutros, Senior Technical Strategist
Follow Michael on X @MBForex
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