Gold, XAU/USD, Weekly, Daily – Technical Update:
- Gold prices have been aiming higher in recent weeks
- Broader upside bias since the end of last year in focus
- Further gains place the focus on 2048 – 2081 ahead
Weekly Chart
Gold prices are attempting to resume the broader uptrend since XAU/USD bottomed towards the end of 2022. Using the weekly chart below, the yellow metal is working to confirm a push above a zone of rising support from October, opening the door to extending near-term gains. That may pave the way for a retest of early 2023 highs.
In such an outcome, gold would also be looking at testing the critical resistance zone between 2034 and 2081. Clearing this range opens the door to setting new highs. Meanwhile, a turn lower from here places the focus on 1893, which is the June low. With that in mind, let us examine the daily chart to get a better picture of what the near-term outlook looks like.
Daily Chart
Gold confirmed a breakout above the near-term falling trendline from May. Since then, prices have also pushed above the 50-day Simple Moving Average, which failed to maintain a downside bias. That has left the yellow metal facing the minor 14.6% Fibonacci retracement level at 2013 before the 2048 – 2081 resistance zone comes into focus.
In the event of a turn lower, immediate support seems to be the 23.6% level at 1971. Confirming downward would once again place the focus on the 50-day SMA, which may reinstate itself as new support. Otherwise, further bearish price action places the focus on the 38.2% level at 1903. Confirming a breakout under this price opens the door to resuming May’s top.
--- Written by Daniel Dubrovsky, Strategist for DailyFX.com
