Key Highlights
- Gold found support at $3,870 and started a recovery wave.
- There was a break above a bearish trend line with resistance at $4,000 on the 4-hour chart.
- WTI Crude Oil failed near $105.00 and corrected some gains.
- GBP/USD remained elevated and might extend gains above 1.3500.
Gold Price Technical Analysis
Gold extended losses below $4,000 before it found support against the US Dollar. A low was formed at $3,870 before the bulls took a stand.
The 4-hour chart of XAU/USD indicates that the price started a fresh upward move and climbed above the $3,975 resistance. There was a clear move above the 50% Fib retracement level of the downward move from the $4,082 swing high to the $3,870 low.
However, the bears might remain active near the 100 Simple Moving Average (red, 4 hours) at $4,070. The first key resistance could be $4,080.
The main resistance might be $4,140 and the 200 Simple Moving Average (green, 4 hours). A clear move above $4,140 could open the door for more upside. In the stated case, the bulls could aim for a move toward $4,220.
If there is a fresh decline, the price could test $3,975. The first major support sits at $3,920. The next support could be $3,870, below which the price might slide to $3,800. Any more losses could clear the path for a test of $3,500.
Looking at WTI Crude Oil, the bulls failed to clear the $105.00 resistance, resulting in a short-term bearish reaction.
Economic Releases to Watch Today:
- BoE Interest Rate Decision – Forecast 4%, versus 3.75% previous.
- US Initial Jobless Claims – Forecast 200K, versus 199K previous.
