On Tuesday, the price of gold rose to a level above $1,900 before sharply falling from its highest point since April 2022.

Even as the US dollar (USD) strengthens along with US Treasury bond rates, the gold price is seeking a new catalyst to pick up its upward momentum.

The price of gold has experienced a dramatic decline from a nine-month high of $1,929, but is again finding support at about the $1,910 mark.

For the rally to continue, gold bulls must hold the ascending 21-Simple Moving Average (SMA) at $1,906 on the four-hour chart.

A rise higher may be on the horizon given that the Relative Strength Index (RSI) has turned positive while remaining above the midline.

Should gold buyers take back control, the price may return to the round $1,920 mark, over which Once more, the multi-month peak is expected.

The current decline may gain more legs if a four-hourly candlestick closes below the bullish 21SMA. The $1,900 mark will thereafter be the target for gold sellers.

A sustained break below the latter will signal a new decline approaching the 50SMA’s upward slope at $1,882.

Overall, deeper price drops for gold can only be viewed as “excellent purchasing opportunities.

The gold price (XAU/USD) has surged to the upside after breaking over the important resistance level of $1,823.00 in the Asian session.

The precious metal is attempting to raise its auction profile above the $1,840.00 resistance level as safe-haven appeal fades.

On a four-hour scale, gold price has broken out of the Ascending Triangle chart pattern.

The horizontal resistance of the aforementioned chart pattern is located at the high of December 13 at $1,824.55, while the upward-sloping trendline is located at the low of December 16 at $1,774.36.

The advance of the 20- and 50-period Exponential Moving Averages (EMAs) at $1,820.00 and $1,812.07, respectively, adds to the upward filters.

Meanwhile, the Relative Strength Index (RSI) (14) has moved from the bearish area of 40.00-60.00 to the bullish level of 60.00-80.00, indicating more upside ahead.

VOT Research Desk

On Wednesday, the price of gold is holding steady above the $1,800 level as the US dollar (USD) licks its wounds and there is a general air of calmness ahead of the crucial US Federal Reserve (Fed) policy decision and Chair Jerome Powell’s press conference.

Despite the rising wedge breach that was verified on Monday, Gold bulls were saved by a weaker US CPI, which propelled the metal’s price beyond the $1,800 barrier.

Buyers of Gold continued to benefit from the positive 14-day Relative Strength Index (RSI), which is bullish.

However, the wedge resistance near $1,824 limited the upward movement. A new purchasing flurry in response to the Federal Reserve event could prompt a retest of the aforementioned resistance, allowing access to the psychological level of $1,850.

The $1,824 upward barrier must be closed on a daily basis in order to invalidate the bearish wedge formation.

On the other hand, there is a significant level of support waiting at the intersection of the wedge support and the bearish 200-Daily Moving Average (DMA) at about $1,790.

The positive 21DMA around $1,771 is anticipated to serve as the next important support.

Nov 03, 2022

VOT Research Desk

Early on Friday morning in Europe, the price of gold (XAU/USD) reverses the greatest daily drop in a week to about $1,638. Thus, despite the risk-averse headlines, the brilliant metal applauds the US dollar’s decline.

The metal’s most recent recovery also pays little attention to Treasury bond yields that are inactive because of the Japanese holiday. The gold price justifies the weak MACD and RSI (14) while flirting with the two-week old support line, which is now around $1,633 at the time of publication.

However, unless the price crosses a downward-sloping resistance line from October 11, it will only move as far as $1,670 at the earliest.

Despite this, the quote’s immediate upside is protected by the 200-SMA level of $1,662.

In contrast, a clear breakdown below the $1,633 support line number could immediately push the XAU/USD bears toward the previous monthly low near $1,617 before indicating the $1,614 yearly low and the $1,600 level.

Even if selling have just taken a break, the gold price is still on the bears’ radar overall.