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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View More
Gold Price Forecast: XAU/USD Faces Key Resistance Level

Gold Price Forecast: XAU/USD Faces Key Resistance Level

Mahmoud Alkudsi, Analyst

Gold Price - XAU/USD Technical Forecast

  • Bulls eye controlling the price action
  • Signals and trading zones to keep in Focus

Edges Higher

Last week, Gold recovered majority of its losses and pushed to its highest levels in two weeks at $1,644. The price declined after, yet closed the candlestick closed on Friday in the green with 8.6% gain.

This week, the Relative Strength Index (RSI) remained flat above 50, reflecting paused uptrend move.

Gold DAILY PRICE CHART (Jan 15 – April 3, 2020) Zoomed out

Gold daily chart price 03-04-20 Zoomed out
Traits of Successful Traders
Traits of Successful Traders
Recommended by Mahmoud Alkudsi
Traits of Successful Traders
Get My Guide

Gold DAILY PRICE CHART (Dec 30 – April 3, 2020) Zoomed In

Gold daily chart price 03-04-20 Zoomed in

Looking at the daily chart, we notice that on March 16 Gold printed its lowest level in over three and half months at $1,451. Later on, bears showed reluctance, this allowed the market to rally and to settle above $1,500 handle. Last week, XAU/USD climbed and remained in current trading zone $1,555- $1,635 as failed in multiple occasions to move to the higher zone.

Yesterday, Gold closed above the 50-day average providing a bullish signal. Thus, a close above the high end of the zone may encourage bulls to push the price towards $1,685. Further close above that level could mean more bullishness towards $1,796. In this scenario, the weekly resistance levels underscored on the chart (zoomed in) should be watched closely.

In turn, any close below the low end of the zone could press XAU/USD towards $1,527. Further close below that level could send the price even lower towards $1,431. That said, the daily and weekly support level and areas marked on the chart should be considered.

Building Confidence in Trading
Building Confidence in Trading
Recommended by Mahmoud Alkudsi
Building Confidence in Trading
Get My Guide

Gold Four-HOUR PRICE CHART (Mar 10 – April 3, 2020)

gold four hour price chart 03-04-20

From the four-hour chart, we noticed that on March 23 Gold rallied above the neckline of double bottom pattern located at $1,554. On March 26, the precious metal rebounded from $1,644 then started a sideways move creating lower highs with higher lows.

A break below $1,592 could send XAU/USD towards $1,558. Although, the daily support level underlined on the chart should be kept in focus. On the flip-side, a break above $1,652 may resume bullish price action towards $1,672. Although, the resistance level at $1,666 should be monitored.

See the chart to find out more about key technical levels in a further bullish / bearish scenario.

Gold Forecast
Gold Forecast
Recommended by Mahmoud Alkudsi
Get Your Free Gold Forecast
Get My Guide

Written By: Mahmoud Alkudsi

Please feel free to contact me on Twitter: @Malkudsi

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

DISCLOSURES