Key Highlights
- Gold started a downside correction and traded below $2,350.
- A connecting bearish trend line is forming with resistance at $2,325 on the 4-hour chart.
- Oil prices extended losses but remained stable above $80.00.
- Bitcoin price traded to a new weekly low below $60,000.
Gold Price Technical Analysis
Gold prices started a downside correction from the $2,431 high against the US Dollar. It traded below the $2,400 and $2,365 support levels.
The 4-hour chart of XAU/USD indicates that the price even broke the $2,325 support and settled below the 100 Simple Moving Average (red, 4 hours). However, the bulls are now active above the $2,280 support and the 200 Simple Moving Average (green, 4 hours).
The price is now consolidating losses, with an immediate resistance at $2,318. The first major resistance is now forming near connecting bearish trend line at $2,325.
The main resistance is now forming near $2,350 and the 100 Simple Moving Average (red, 4 hours), above which the price could accelerate higher toward $2,395.
On the downside, the 200 Simple Moving Average (green, 4 hours) is the key at $2,280. A downside break below the $2,280 support might call for more downsides. The next major support is near the $2,250 level. Any more losses might send Gold prices toward $2,220.
Looking at Bitcoin, there was a strong decline, and the bears were able to push the price below the $60,000 and $58,500 support levels.
Economic Releases to Watch Today
- Germany’s Manufacturing PMI for March 2024 – Forecast 42.2, versus 42.2 previous.
- Euro Zone Manufacturing PMI March 2024 – Forecast 45.6, versus 45.6 previous.
- US Initial Jobless Claims – Forecast 212K, versus 207K previous.
