Key Highlights
- Gold started a recovery wave from the $4,100 zone.
- A major bearish trend line is forming with resistance at $4,850 on the 4-hour chart.
- WTI Crude Oil started a consolidation phase below the $95 and $98 resistance levels.
- Bitcoin could start a fresh increase if it settles above $72,500.
Gold Price Technical Analysis
Gold finally found some support near $4,100 against the US Dollar. The price started a decent recovery wave above $4,300 and $4,400.
The 4-hour chart of XAU/USD indicates that the price was able to climb above the 23.6% Fib retracement level of the downward move from the $5,419 swing high to the $4,098 low. However, the price is still well below the 100 Simple Moving Average (red, 4 hours) and the 200 Simple Moving Average (green, 4 hours).
On the upside, immediate resistance is $4,600. The next major resistance sits near $4,750 and the 50% Fib retracement level of the downward move from the $5,419 swing high to the $4,098 low.
The main resistance could be near the trend line at $4,850. A clear move above $4,850 could open the doors for more upside. In the stated case, the bulls could aim for a move toward $5,000 or the 100 Simple Moving Average (red, 4 hours), above which the price could test $5,200.
If there is another decline, Gold might find bids near the $4,435 level. The first major support sits at $4,300, below which the price might slide to $4,120.
The main support sits at $4,000. Any more losses might call for a test of $3,880 or even $3,850 in the coming days.
Looking at WTI Crude Oil, the price remained supported above $80 and might start a fresh increase if it settles above $95.
Economic Releases to Watch Today
- US Initial Jobless Claims – Forecast 210K, versus 205K previous.
