FXNEWS24 |Gold Price Sees Limited Upside Momentum Despite Three Week High

In the days ahead, developments in US economic data and updates on US-China relations will significantly influence market direction, as the upward mom

In the days ahead, developments in US economic data and updates on US-China relations will significantly influence market direction, as the upward momentum for XAU/USD appears to be tapering off.

Technical Analysis of Gold Price

Despite a clear breakout above a monthly horizontal resistance, now acting as a support level, and the 200-day Simple Moving Average (SMA), Gold’s price struggles to maintain its upward trajectory due to overbought conditions signaled by the Relative Strength Index (RSI) (14).

Furthermore, the 50% Fibonacci retracement level of the July-August decline, located around $1,836, poses an additional challenge for the GOLD bulls.

In the event that GOLD Price sustains its position above the 200-day SMA and the aforementioned resistance-now-support area, disregarding the overbought RSI, the XAU/USD bulls could potentially target the 61.8% Fibonacci ratio at approximately $1,948.

However, an inclining resistance trend line from July 20, located near $1,958, will present an obstacle for GOLD buyers in the subsequent stages.

Conversely, a clear downward break below the key moving average and the corresponding support zone, situated around $1,933 and $1,932-30, respectively, might prompt a renewed interest from GOLD sellers.

Nevertheless, an ascending trend line originating from August 31, near $1,817 at present, could potentially challenge the XAU/USD bears before ceding control.

In summary, Gold’s price continues to be favored by bullish sentiment unless it breaches the support level at $1,817.

Gold Price Sees Limited Upside Momentum Despite Three Week High

Technical Analysis of Gold Price

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