Gold Technical: Bounced Higher from Key Short-term Support

• Gold (XAU/USD) is holding above 2,000 key support ahead of US CPI.
• Short-term uptrend phase from the 19 April 2023 low remains intact.
• Next intermediate resistance at 2,075; its current all-time high.

In our previous article “Gold has not lost its glitter”, we have highlighted the key macro factors that may have a significant influence in driving the fundamentals and price actions behaviour of Gold (XAU/USD).

Right now, let’s decipher its latest developments through the lens of technical analysis as the release of the important US CPI inflation data for April looms later today.

Fig 1:  Gold (XAU/USD) trend as of 10 May 2023 (Source: TradingView, click to enlarge chart)

The technical picture for Gold (XAU/USD) is still skewed towards a short-term uptrend phase in place since the 19 April 2023 low of 1,969.

Recent price actions of XAU/USD have formed a daily “higher low” on 5 May 2023 after a retest on the median line of a major ascending channel in place since 3 November 2022 and an upward-sloping 20-day moving average now acting as a support at around 2,000.

In addition, the hourly RSI oscillator is still hovering above the corresponding support at the 43% level and has not hit its overbought zone (above 70%) during its prior up move from 5 May to 10 May 2023.

These observations suggest that the short-term bulls may be still in control above the 2,000 key short-term pivotal support with the next intermediate resistance to watch at 2,075 (current all-time high printed on 7 August 2020).

On the other hand, a break with an hourly close below 2,000 negates the bullish tone to expose the next support zone at 1,970/1,955 that also confluences closely with the upward-sloping 50-day moving average.