Trade gold against US dollar XAU/USD continues to recede in recent sessions. It had been hovering at the highs of about $3,250 prior to this drop. The precious metal was able to hold on to those small gains for most of the trading day on Monday. Traders are in full-blown freak-out mode looking at technical indicators. The neutral Gold outlook for the short-term Gold prices are currently stuck between 1830 and 1800, respectively acting as resistance and support.
Throughout Tuesday’s trading day, XAU/USD showed impressive short-term action, even battling against piecemeal upward pressure after piercing above the $3,250 threshold. This minor pullback hasn’t done much to curb the overall bullish momentum seen on Monday. Technical indicators as the market’s attention moves to a more technical focus, indicators are providing a mixed picture about where prices are heading next.
Looking at the technical landscape for XAU/USD, we see some important indicators rolling over or otherwise breaking slightly higher. Though they never go above zero, they remain below zero. Meanwhile the 20 Simple Moving Average (SMA) for XAU/USD is much higher than the current trading level. This indicates a short-term bearish sentiment. This simple moving average (SMA) shows where resistance lies at around $3,293. This is a level that gold prices are likely to have a hard time moving above in the short term.
Both XAU/USD’s 100 and 200 SMAs lie well south of current price levels. This positioning indicates that there is a noticeable lack of selling pressure in the market today. For now, sellers are nowhere to be found. As a result, XAU/USD has been trading in a directionless manner in between these moving averages.
More recently, analysis of prevailing market conditions has underscored that a flat 20 SMA provides intraday support around $3,204.70. This price point represents an essential focus for traders eager to predict the upcoming price action in the coming hours. Lastly, the Momentum indicator for XAU/USD has started to roll over recently, but is still just above its 100 midpoint. This can create an impression that momentum is already starting to wane, when in fact there aren’t yet clear signs of a downward trend.
The Relative Strength Index (RSI) for XAU/USD is currently neutral at 51. This reading shows generally that for now, there is not yet a strong directional bias. As such, traders will likely be left waiting and hoping as they watch for additional advancements in the gold price.