Gold Resilience: XAU/USD Thrives Amidst Surging U.S. Yields
After recording its most significant weekly gain since January, gold has extended its ascent for a second consecutive week, reaching a three-month peak above $980 USD, underpinned by safe-haven demand. While next week's economic reports hold the potential to sway XAU/USD's trajectory with high-impact data releases, investors may well keep a watchful eye on the headlines surrounding the Israel-Hamas conflict.
The Relative Strength Index (RSI) on the daily chart has surged above 70, signaling overbought technical conditions for gold for the first time since March. In the event of a technical correction for XAU/USD, $1,960 (representing the 23.6% Fibonacci retracement of the latest uptrend) stands as the initial support, followed by the $1,930-$1,920 range (comprising the 200-day Simple Moving Average and 100-day SMA). A daily close below this support could dampen buyer sentiment, potentially ushering in a more extensive price drop towards $1,900 USD (the 38.2% Fibonacci retracement and a significant psychological level).
Conversely, in the upward trajectory, gold may encounter robust resistance at $2,000 USD, a formidable psychological and static level. If XAU/USD manages to surpass this threshold, technical buyers might step in to fuel further gains, targeting levels of $2,020 USD and $2,040 USD, both significant static milestones.
The Relative Strength Index (RSI) on the daily chart has surged above 70, signaling overbought technical conditions for gold for the first time since March. In the event of a technical correction for XAU/USD, $1,960 (representing the 23.6% Fibonacci retracement of the latest uptrend) stands as the initial support, followed by the $1,930-$1,920 range (comprising the 200-day Simple Moving Average and 100-day SMA). A daily close below this support could dampen buyer sentiment, potentially ushering in a more extensive price drop towards $1,900 USD (the 38.2% Fibonacci retracement and a significant psychological level).
Conversely, in the upward trajectory, gold may encounter robust resistance at $2,000 USD, a formidable psychological and static level. If XAU/USD manages to surpass this threshold, technical buyers might step in to fuel further gains, targeting levels of $2,020 USD and $2,040 USD, both significant static milestones.
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