Gold Technical Analysis: $1,940 Milestone and Trading Insights
Gold continues to rise, reaching new multi-week highs above $1,940.
Fundamental Overview
Gold surged with bullish momentum, reaching its highest point in nearly a month, surpassing $1,940 on Wednesday. The XAU/USD rally mid-week was driven by escalating geopolitical tensions, with investors closely monitoring developments related to the Israel-Hamas conflict.
The price of gold is edging down from its recently reached four-week peak at $1,943. Nevertheless, it is holding onto its recent gains, supported by a relatively weaker US Dollar and a decline in US Treasury bond yields. Gold traders are anticipating comments from several Federal Reserve (Fed) speakers for the next potential upward push, with a special focus on Federal Reserve Chair Jerome Powell’s speech scheduled for Thursday.
Gold price remains well-supported due to a surge in demand for safe-haven assets. In contrast, the US Dollar faces challenges in benefiting from the heightened demand for safe havens following recent dovish statements by Federal Reserve officials, confirming a halt to a Fed rate hike in November.
In the upcoming sessions, a series of Federal Reserve officials will take the spotlight in American trading, preceding the release of the Fed’s Beige Book, which will offer new insights into the central bank’s policy direction. The combination of comments from Fed officials, alongside mid-tier US economic data and corporate earnings reports, will inject fresh momentum into gold trading. Simultaneously, ongoing tensions in the Middle East will remain a focal point of interest.
Gold Technical Analysis Daily Chart:
Technical Overview
Gold is currently trading within a up channel.
Gold is positioned above all Moving Averages (SMA).
The Relative Strength Index (RSI) is in buying zone, while the Stochastic oscillator suggests positive trend.
Immediate Resistance level: 1949.67
Immediate support level: 1932.27
How To Trade Gold
Following a price decline, gold found support in that region and initiated a reversal. Presently, gold is making efforts to move upward and is currently positioned within a key resistance area. If this zone is breached, it could pave the way for further upward movement.
TRADE SUGGESTION- STOP BUY– 1952.84, TAKE PROFIT AT- 1979.00, SL AT- 1934.13.