Gold Weekly Technical Outlook: Neutral

  • Gold prices rebound off key support as bears bounce off 1640.
  • USD strength holds XAU/USD at bay as technical levels hold
  • Gold futures firm above the April 2020 low of 1638.2

Recommended by Tammy Da Costa

How to Trade Gold

Gold (XAU/USD) Technical Analysis

Gold prices have continued to dwindle as USD strength drives XAU/USD lower.

With a strong bearish trend currently intact, a temporary retest of 1622 allowed bulls to push prices higher before running into resistance at 1738.7 (trendline resistance).

After a strong decline from the March high of 2078.8, a strong US Dollar and higher rates have continued to weigh on the precious metal, driving prices back towards the 1640 – 1650 zone.

Gold (XAU/USD) Weekly Chart

Chart  Description automatically generated

Chart prepared byTammy Da Costausing TradingView

As key Fibonacci levels continue to provide support and resistance for Gold, a break of the September low of 1622.2 would be required before bears can claim 1600. Meanwhile, with another narrow range forming between 1646 & 1738, a move higher could drive the upside move towards 1800.

Graphical user interface, chart, histogram  Description automatically generated

Chart prepared byTammy Da Costausing TradingView

Starts in:

Live now:

Oct 25

( 17:10 GMT )

Recommended by Tammy Da Costa

Trading Price Action

Register for webinar

Join now

Webinar has ended

Gold (XAU/USD) Futures Daily Chart

Chart, histogram  Description automatically generated

Chart prepared byTammy Da Costausing TradingView

The remaining question is whether bears can break this support. The zone that runs from 1680-1700 has been in-play multiple times over the past couple of years, ever since gold topped-out in the summer of 2020. However, if prices hold below the psych level of 1650, it could be possible for bears to drive prices back towards 1600.

— Written by Tammy Da Costa, Analyst for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707





Source link

By INFO

Leave a Reply

Your email address will not be published. Required fields are marked *