As such, the XAU/USD pair has hit a historic landmark in its continuing comeback. As recently as April, it well exceeded that $4,100 mark—at times trading above it. First, gold is doing remarkably well compared to the US dollar’s strength. This upward movement is the first sign of a bullish trend that is gaining momentum. At this moment, the gold price is still well above each of its moving averages, giving further technical strength and conviction to its moves.
Currently, 20 Simple Moving Average (SMA) for the XAU/USD pair at 4,026 around. This technical indicator acts as a key psychological level, representing the underlying mood of the market. Analysts see the technical view as still bullish, with the XAU/USD pair showing bullish traits on all timeframes.
Indeed, the hourly chart shows that technical indicators have already returned to upward progress, pushing into the overbought territory. This indicates bullish support and a high level of buying confidence from investors. This momentum is further supported by the Relative Strength Index (RSI). Right now it is leading at a 70, which is an indication of very strong and sustained price action.
Support is initially seen at $4,100.00, $4,086.20, and $4,071.55. With minimal downside risk at play, these levels provide a comfortable floor for investors to get involved in the midst of this rally. On the flip side, resistance levels are $4,117.00, $4,130.00, and $4,150.00. These technical levels will be key to watch for traders as potential ceilings to any continued price appreciation.
In the 4-hour chart, the Momentum indicator is strongly oriented north in positive territory. This strengthens the positive sentiment towards gold prices as they keep climbing into record territory. Both traders and analysts are looking at these recent developments with great interest to determine whether this growth is durable.
The XAU/USD pair continues to demonstrate high demand for gold. This trend is largely fueled by international economic turmoil and changing capital markets. This happens because investors rush to gold during times of uncertainty. This economic rush to safety has nevertheless made its price soar by a staggering 500%.