- Gold price is eyeing an upside break above the $1,975 resistance.
- A major bullish trend line is forming with support near $1,955 on the 4-hour chart.
- Crude oil prices might climb further above $80.
- The US GDP could grow 1.8% in Q2 2023 (Preliminary), down from 2.0%.
Gold Price Technical Analysis
Gold price found support near $1,950 against the US Dollar. The price seems to be forming a base above $1,950 and slowly moving higher.
The 4-hour chart of XAU/USD indicates that the price was able to settle above $1,950 and the 100 Simple Moving Average (red, 4 hours), and the 200 Simple Moving Average (green, 4 hours).
Recently, there was a break above the 50% Fib retracement level of the downward move from the $1,987 swing high to the $1,951 low. However, it is now facing a key barrier at $1,975.
The next major resistance is near the $1,978 level or the 76.4% Fib retracement level of the downward move from the $1,987 swing high to the $1,951 low, above which the price could rise toward $1,985.
Any more gains might send the price toward the $1,992 resistance level or even $2,000. Conversely, the price might correct lower. Initial support is near the $1,958 level. The next major support is near $1,955. There is also a major bullish trend line forming with support near $1,955 on the same chart.
If the bulls fail to protect the $1,955 support, there is a risk of a major decline. In the stated case, the price could decline toward the $1,925 level.
Looking at crude oil prices, there was a steady increase and it seems like the bulls might aim for a move toward the $82 level.
Economic Releases to Watch Today
US Gross Domestic Product for Q2 2023 (Preliminary) – Forecast 1.8% versus previous 2.0%.
US Initial Jobless Claims - Forecast 235K, versus 228K previous.