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Gold Price Breaks Support But Uptrend Intact – Here’s Why

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Aayush Jindal

Key Highlights

  • Gold started a downside correction from the $2,430 high.
  • It traded below a key bullish trend line with support at $2,375 on the 4-hour chart.
  • EUR/USD is struggling to recover above the 1.0680 resistance.
  • Bitcoin price regained strength for a move above the $64,500 resistance.

Gold Price Technical Analysis

Gold prices gained pace above the $2,350 resistance against the US Dollar. It traded to a record high at $2,431 before there was a pullback.

The 4-hour chart of XAU/USD indicates that the price started a downside correction below the $2,400 support. It traded below the 23.6% Fib retracement level of the upward move from the $2,147 swing low to the $2,431 high.

Besides, it traded below a key bullish trend line with support at $2,375 on the same chart. The price is now approaching the $2,320 support and the 100 Simple Moving Average (red, 4 hours).

The next major support is near the 50% Fib retracement level of the upward move from the $2,147 swing low to the $2,431 high at $2,290. Any more losses might send Gold prices toward the 200 Simple Moving Average (green, 4 hours) at $2,250.

On the upside, the price is facing resistance near the $2,355 level. The main resistance is now forming near $2,400, above which the price could accelerate higher toward $2,430.

Looking at Bitcoin, there was a strong upward move above the $64,000 zone and there are chances of more upsides.

Economic Releases to Watch Today

  • Euro Zone Manufacturing PMI for April 2024 (Preliminary) – Forecast 46.5, versus 46.1 previous.
  • Euro Zone Services PMI for April 2024 (Preliminary) – Forecast 51.8, versus 51.5 previous.
  • UK Manufacturing PMI for April 2024 (Preliminary) – Forecast 50.3, versus 50.3 previous.
  • UK Services PMI for April 2024 (Preliminary) – Forecast 53.0, versus 53.1 previous.
  • US Manufacturing PMI for April 2024 (Preliminary) – Forecast 52.0, versus 51.9 previous.
  • US Services PMI for April 2024 (Preliminary) – Forecast 52.0, versus 51.7 previous.
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