"Gold Consolidates Around $1,960 Mark, Poised for Further Upside
In recent trading sessions, the price of gold has solidified its upward trend, reaching $1,971 in early Wednesday's Asian trading. Weakening US inflation and a decrease in American bond yields have fueled demand for precious metals. Additionally, escalating geopolitical tensions are prompting a shift towards safe-haven assets.
The daily chart for XAU/USD indicates a sharp price increase, testing the 20-day Simple Moving Average (SMA). However, it faces resistance at this level and experiences a slight pullback. A consolidation above $1,970 could signal further strength, supported by remaining above crucial SMAs providing significant support in the range of $1,933 to $1,925. A drop below this range might reveal vulnerability ahead.
Looking ahead, the chart leans towards an upward trend, despite somewhat muted momentum. Gold remains above the 20-SMA, ready for a potential upward move. Immediate support is identified at $1,956, with a dip below $1,947 possibly shifting the trend to neutral or bearish.
On the flip side, as long as XAU/USD stays above $1,957, an upward move to test recent highs remains plausible. Breaking above $1,975 could lead to acceleration towards $1,980 and beyond.
Key Support Levels: $1,956, $1,943, $1,933
Key Resistance Levels: $1,971, $1,982, $1,993
The daily chart for XAU/USD indicates a sharp price increase, testing the 20-day Simple Moving Average (SMA). However, it faces resistance at this level and experiences a slight pullback. A consolidation above $1,970 could signal further strength, supported by remaining above crucial SMAs providing significant support in the range of $1,933 to $1,925. A drop below this range might reveal vulnerability ahead.
Looking ahead, the chart leans towards an upward trend, despite somewhat muted momentum. Gold remains above the 20-SMA, ready for a potential upward move. Immediate support is identified at $1,956, with a dip below $1,947 possibly shifting the trend to neutral or bearish.
On the flip side, as long as XAU/USD stays above $1,957, an upward move to test recent highs remains plausible. Breaking above $1,975 could lead to acceleration towards $1,980 and beyond.
Key Support Levels: $1,956, $1,943, $1,933
Key Resistance Levels: $1,971, $1,982, $1,993
