Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Gold Price Outlook Bullish as XAU/USD Approaches Key Resistance

Gold Price Outlook Bullish as XAU/USD Approaches Key Resistance

Dimitri Zabelin, Analyst


What's on this page


  • Gold prices may continue to rise as XAU/USD approaches key resistance
  • Clearing the multi-layered ceiling opens the door to another bullish spike
  • However, technical cues on a monthly chart are sending worrying signals

Gold prices have risen a little over three percent after clearing the September descending resistance channel, around the same time the precious metal clocked in six-year highs. XAU/USD is now hovering just below the 1532.01-1535 resistance range (white dotted lines). If gold prices clear this area with follow-through, it could open the door to re-testing the multi-layered ceiling between 1551.96 and 1557.10.

Gold Prices – Daily Chart

Gold Daily Price Chart

Gold prices chart created using TradingView

Looking at a weekly chart shows the XAU/USD has been on a steady rise since late-2016, with the slope of appreciation steeping in May 2019 before buying pressure surrendered and a selloff ensued. Following the bearish correction, the yellow metal has made a recovery after bottoming out around 1445.82 (gold-dotted line), close to the 23.6 percent Fibonacci extension level.

Gold Prices – Weekly Chart

Gold Weekly Price Chart

Gold prices chart created using TradingView

However, zooming out to a monthly chart shows what could be a discouraging picture for gold bulls. Negative RSI divergence show upside momentum since August has been ebbing while gold prices trade above that month’s close. While this does not necessarily precede a turn lower, the incongruity between momentum and prices may be something traders will begin monitoring with greater scrutiny.

Gold Prices – Monthly Chart

Gold Monthly Price Chart

Gold prices chart created using TradingView


--- Written by Dimitri Zabelin, Jr Currency Analyst for

To contact Dimitri, use the comments section below or @ZabelinDimitri on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.