Following this week’s indecisive price action, gold’s near-term technical outlook points to a neutral/bearish bias. The Relative Strength Index (RSI) indicator on the daily chart is yet to reach 50, suggesting that XAU/USD has more correction room on the upside despite struggling to gather bullish momentum.
On the upside, $1,740 (20-day SMA, 50-day SMA) aligns as key resistance. With a daily close above that level, additional gains toward $1,760 (Fibonacci 23.6% retracement of the latest downtrend) and $1,790 (100-period SMA) could be witnessed.
$1,700 (psychological level, end-point of the downtrend) stays intact as significant support. In case gold falls below that level and starts using it as resistance, bears could target $1,680 (July 21 low) and $1,675 (static support from March 2021).
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk.
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