Gold has solidified its recent uptrend, reaching $1,971 during early Asian trading on Wednesday. Weaker-than-expected US inflation and a drop in US Treasury bond yields are bolstering the demand for precious metals. Geopolitical tensions are also prompting a flow of funds into safe-haven assets.
The daily XAU/USD chart shows a notable surge, testing the 20-day Simple Moving Average (SMA). Despite facing resistance at this average and experiencing a slight dip, a consolidation above $1,970 could signal continued strength. Prices remain comfortably above other key SMAs, providing crucial support from $1,933 to $1,925. A drop below this range would indicate potential weakness ahead.
In the short term, the chart supports the upward trend, with prices significantly above the 20-day SMA, indicating a potential upward reversal. Immediate support stands at $1,956, and a breach below $1,947 would shift the trend to neutral/bearish. On the upside, as long as XAU/USD stays above $1,957, a test of recent highs is likely. Breaking above $1,975 would suggest an acceleration toward $1,980 and beyond.
Support Levels: $1,956, $1,943, $1,933
Resistance Levels: $1,971, $1,982, $1,993
The daily XAU/USD chart shows a notable surge, testing the 20-day Simple Moving Average (SMA). Despite facing resistance at this average and experiencing a slight dip, a consolidation above $1,970 could signal continued strength. Prices remain comfortably above other key SMAs, providing crucial support from $1,933 to $1,925. A drop below this range would indicate potential weakness ahead.
In the short term, the chart supports the upward trend, with prices significantly above the 20-day SMA, indicating a potential upward reversal. Immediate support stands at $1,956, and a breach below $1,947 would shift the trend to neutral/bearish. On the upside, as long as XAU/USD stays above $1,957, a test of recent highs is likely. Breaking above $1,975 would suggest an acceleration toward $1,980 and beyond.
Support Levels: $1,956, $1,943, $1,933
Resistance Levels: $1,971, $1,982, $1,993
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The analysis is on track