Key Highlights
- Gold extended its rally and traded to a new record high above $4,380 before correcting lower.
- It traded below a key bullish trend line with support at $4,120 on the 4-hour chart.
- WTI Crude Oil prices could struggle to recover above $60.00.
- EUR/USD is again moving lower below 1.1650 and 1.1620.
Gold Price Technical Analysis
Gold prices formed a base above $4,000 and started a fresh increase against the US Dollar. It cleared many hurdles near $4,150 and $4,250.
The 4-hour chart of XAU/USD indicates that the price settled above the $4,000 level, the 100 Simple Moving Average (red, 4 hours), and the 200 Simple Moving Average (green, 4 hours). The upward move was such that the price spiked above $4,350.
Gold traded to a new record high near $4,381 before the bears took a stand. There was a sharp downside correction below $4,200. The price traded below a key bullish trend line with support at $4,120.
It tested $4,000 and is currently consolidating losses. On the upside, immediate resistance is near the $4,150 level. The next major resistance sits near the $4,180 level.
A clear move above $4,180 could open the doors for more upside. In the stated case, the bulls could aim for a move toward $4,250, above which the price could rally toward the milestone level of $4,350.
On the downside, initial support is near the $4,000 level. The first key support is $3,945. The next major support is near the $3,850 level. A downside break below $3,850 might call for more downsides. The next key zone to watch could be $3,750.
Looking at WTI Crude Oil, the price attempted a decent recovery wave, but the bears remained active below the $60.00 level.
Economic Releases to Watch Today
- US Initial Jobless Claims – Forecast 227K, versus 218K previous.
- US New Home Sales for Sep 2025 (MoM) – Forecast +2.9% versus +20.5% previous.
