Key Highlights
- Gold price rallied recently and traded to a new 10-month high above $1,340 against the US Dollar.
- There was a break above a bullish flag with resistance at $1,311 on the 4-hours chart of XAU/USD.
- The UK Claimant Change Changed 14.2K in Jan 2019, more than the 12.3K forecast.
- The FOMC Meeting Minutes will be released, which could impact gold movements in the short term.
Gold Price Technical Analysis
After correcting from the $1,326 swing high, gold price found support near the $1,302 level against the US Dollar. The price started a fresh upward move and broke many resistances near $1,315 and $1,320.
The 4-hour chart of XAU/USD indicates that the price gained pace once it broke the $1,320 resistance and settled above the 100 simple moving average (red, 4-hours). During the rise, it broke the 61.8% Fib retracement level of the last drop from the $1,326 high to $1,302 low.
More importantly, there was a break above a bullish flag with resistance at $1,311, opening the doors for a fresh high above the $1,326 level. Buyers gained control and pushed the price to a new 10-month high above $1,340.
The price even spiked above the 1.618 Fib extension level of the last drop from the $1,326 high to $1,302 low at $1,341. In the short term, there could be a downside correction, but dips remain supported above $1,330.
On the upside, the next key target for buyers could be $1,350 or the 2.618 Fib extension level of the last drop from the $1,326 high to $1,302 low.
Overall, gold price is placed nicely in a strong uptrend and it may continue to rise towards the $1,350 and $1,355 resistance levels. On the other hand, EUR/USD recovered recently, but it failed to break the key 1.1340-1.1350 resonance area. Today’s FOMC Meeting Minutes report holds the key and it could impact gold price and major pairs such as EUR/USD, GBP/USD, AUD/USD and USD/JPY in the near term.
Economic Releases to Watch Today
- Euro Zone Consumer Confidence Feb 2019 (Preliminary) – Forecast -7.8, versus -7.9 previous.
- Swiss Industrial Production for Q4 2018 (YoY) – Forecast +1.2%, versus +1.4% previous.
- FOMC Meeting Minutes.
