Gold Holds Above 1900 Whats next move
Following Tuesday's selloff, Spot gold rebounded from an intraday low at $1,863 before closing higher at $1,915. In fact, the weakening of U.S. dollars helped the rebound of gold. The ICE U.S. Dollar Index retreated 0.3% on day to 93.42.
Share this:
Following Tuesday's selloff, Spot gold rebounded from an intraday low at $1,863 before closing higher at $1,915. In fact, the weakening of U.S. dollars helped the rebound of gold. The ICE U.S. Dollar Index retreated 0.3% on day to 93.42.
Besides, the vitality of gold jumped to 21.5%, the highest level since April. Investors should expect choppy trading in coming weeks. Currently, the investors would weigh on the dollars, bond yield and the risk appetite for the movement of gold.
Gold (Short Term): Key Resistance level at $2,015
Source: GAIN Capital, TradingView
On a daily chart, the candlestick pattern showed a Long Ranging Doji, a potential reversal pattern, after sinking to $1,863.
In fact, the technical rebound cannot be ruled out, if gold prices break above yesterday's high at $1,950.
However, unless the resistance level at $2,015 (the day low of the bearish Engulfing bar) is violated, gold prices should remain in the phase of consolidation. The support levels would be located $1,863 and $1.770.
On the other hand, a break above $2,015 would turn the technical outlook to positive and bring a re-visit of next resistance level at $2,075.
Gold (Intraday): Rebound Expected
Source: GAIN Capital, TradingView
On a 1 hour chart, gold posted another rebound from $1,906 and returned the level above the 20-period moving average. Besides, the 20-period moving average is turning upward.
The relative strength index also breaks above the declining trend line drawn from August 5.
Readers could set the support level at the previous low at $1,906, while resistance levels would be located at $1,970 (50% fibonacci retracement) and $1,995 (61.8% Fibonacci retracement). Investors should focus on the resistance level at $1,995 as it is the level of ABC corrective wave as well. After that, the next resistance level would be located at $2,015.
In an alternative scenario, a break below $1,906 would trigger a return to the support level at $1,863.
Besides, the vitality of gold jumped to 21.5%, the highest level since April. Investors should expect choppy trading in coming weeks. Currently, the investors would weigh on the dollars, bond yield and the risk appetite for the movement of gold.
Gold (Short Term): Key Resistance level at $2,015
Source: GAIN Capital, TradingView
On a daily chart, the candlestick pattern showed a Long Ranging Doji, a potential reversal pattern, after sinking to $1,863.
In fact, the technical rebound cannot be ruled out, if gold prices break above yesterday's high at $1,950.
However, unless the resistance level at $2,015 (the day low of the bearish Engulfing bar) is violated, gold prices should remain in the phase of consolidation. The support levels would be located $1,863 and $1.770.
On the other hand, a break above $2,015 would turn the technical outlook to positive and bring a re-visit of next resistance level at $2,075.
Gold (Intraday): Rebound Expected
Source: GAIN Capital, TradingView
On a 1 hour chart, gold posted another rebound from $1,906 and returned the level above the 20-period moving average. Besides, the 20-period moving average is turning upward.
The relative strength index also breaks above the declining trend line drawn from August 5.
Readers could set the support level at the previous low at $1,906, while resistance levels would be located at $1,970 (50% fibonacci retracement) and $1,995 (61.8% Fibonacci retracement). Investors should focus on the resistance level at $1,995 as it is the level of ABC corrective wave as well. After that, the next resistance level would be located at $2,015.
In an alternative scenario, a break below $1,906 would trigger a return to the support level at $1,863.
Related tags:
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Gold Price Outlook: XAU/USD Resistance at $4200 Sets Up for NFP
It was a strong sell-off to start the week in gold and despite a Tuesday bounce, sellers are continuing to push following a resistance hit at the $4200 level.
Treasury Yields Lose Momentum as Energy ETF Retreats
The 10-year Treasury yield is testing a resistance zone respected since the 1920s, as bearish RSI divergence signals fading upside momentum.
Gold Forecast: Are Bears Regaining Control of XAU/USD?
The start of the trading week has not been particularly favorable for gold. This can be seen in recent XAU/USD price action, with the metal falling nearly 4.00% over the last two trading sessions and bringing renewed attention to a bearish bias within the market.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.