XAU/USD, the price of gold in US dollars, is flying today. Since then, it has made a rapid ascent back above the psychologically important $3,300 level, revealing strong bullish strength. The duo continued to retest the waters through the day, but stayed within Wednesday’s range just like that day’s trading session. Read more here XAU/USD retreated sharply from its recent multi-year highs. It discovered anchoring about the $3,330 level for a lot of the day, a sign of divided market sentiment regarding gold charges.
By late Wednesday, XAU/USD had recovered and was above the $3,300 mark. It didn’t stop there, climbing all the way up to a peak of $3,367.67 in the early hours of Asian trading. This bullish development suggested a possible reversal was in the works. The pair has faced obstacles to continuing its bullish trend. Analysts have noted that XAU/USD is having difficulty re-establishing a solid bullish trend, despite the ongoing rebound. This unprecedented situation leads to troubling questions about how it will perform going forward.
Technical indicators show that XAU/USD is consolidating though comfortable but under rejection. The pair is trading under the 20 Simple Moving Average (SMA), which is slightly bearish. This SMA is now roughly $3,370. As a result, this SMA serves as an angle of attack resistance line. This has made it difficult for XAU/USD to breakout and form a more lasting advance.
Earlier yesterday, XAU/USD bounced back above the $3,300 mark. Yet, the intermediate and longer-term moving averages still exhibit a bullish slope, located well beneath current trading levels. The 20 SMA is advancing significantly above both the 100 and 200 SMAs, indicating a general upward trend in the longer run. Despite the slight gains, traders are still apprehensive as bearish technical readings imply a possible twist to the downside for the XAU/USD pair.
XAU/USD support levels are seen at $3,314.50, $3,301.40 and $3,288.70 today. Traders should watch these zones intently in the sessions ahead. That’s because they directly influence price trends and direction, moving the needle to create or reverse trends, and they set the prevailing market mood. If XAU/USD crosses above the 20 SMA at $3,370, it will signal a robust upward breakout ahead. Traders will want to keep a close eye on this important level.
Market analysts are still concerned about the tug-of-war between positive economic data and negative investor risk sentiment impacting gold prices. Ongoing inflation pressures, geopolitical conflict and tightening monetary policy will all have direct effects on the price action ahead for XAU/USD. Follow these dynamics as they develop.