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Gold Eyes New Upside — Fresh Increase on the Horizon?

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Aayush Jindal

Key Highlights

  • Gold found support near $3,120 and started a fresh increase.
  • It cleared a key bearish trend line with resistance at $3,220 on the 4-hour chart.
  • EUR/USD is moving higher above the 1.1250 resistance zone.
  • WTI Crude Oil prices recovered and climbed above the $63.00 level.

Gold Price Technical Analysis

Gold prices remained supported above $3,120. The price formed a base and started a fresh increase above the $3,180 and $3,200 resistance levels.

The 4-hour chart of XAU/USD indicates that the price cleared a key bearish trend line with resistance at $3,220. There was a clear move above the 50% Fib retracement level of the downward move from the $3,437 swing high to the $3,120 low.

The price settled above the $3,270 level, the 200 Simple Moving Average (green, 4 hours), and the 100 Simple Moving Average (red, 4 hours). On the upside, immediate resistance is near the $3,315 level and the 61.8% Fib retracement level of the downward move from the $3,437 swing high to the $3,120 low.

The next major resistance sits near the $3,365 level. A clear move above the $3,365 resistance could open the doors for more upsides. The next major resistance could be $3,380, above which the price could rally toward the milestone level of $3,400.

On the downside, initial support is near the $3,280 level. The first key support is near $3,250. The next major support is near the $3,240 level. The main support is now $3,220. A downside break below the $3,220 support might call for more downsides. The next major support is near the $3,150 level.

Looking at EUR/USD, the pair started a decent upward move and might soon aim for a fresh increase if it clears the 1.1320 resistance.

Economic Releases to Watch Today

  • ECB's Lane speech.
  • Fed's Barkin speech.
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