Gold Price Could Extend Gains To $1,900, Here’s Why
- Gold price started a fresh increase above the $1,825 resistance.
- A connecting bullish trend line is forming with support near $1,835 on the 4-hours chart.
- EUR/USD might attempt a fresh increase above the 1.0700 zone.
- The US ADP employment could change 150K in Dec 2022, up from 127K.
Gold Price Technical Analysis
Gold price formed a base above the $1,780 level against the US Dollar. The price started a steady increase above the $1,800 and $1,810 levels.
The 4-hours chart of XAU/USD indicates that the price gained pace above the $1,820 resistance zone. The price even moved above the $1,850 level and settled well above the 100 simple moving average (red, 4-hours) plus the 200 simple moving average (green, 4-hours).
The price tested the $1,865 and started a consolidation phase. On the upside, the price might face sellers near the $1,872 level.
The next major resistance is near the $1,880 level. Any more gains might send the price towards the $1,900 resistance level, above which gold price might revisit the $1,920 resistance.
On the downside, an initial support is near the $1,840 level. There is also a connecting bullish trend line forming with support near $1,835 on the same chart.
The next major support is near the $1,822 level. The main support is near $1,800, below which gold price might struggle to stay above the $1,780 zone.
Looking at EUR/USD, the pair could attempt a fresh increase if it clears the 1.0700 resistance zone in the coming sessions.
Economic Releases to Watch Today
- US Initial Jobless Claims - Forecast 225K, versus 225K previous.
- US ADP Employment Change for Dec 2022 - Forecast 150K, versus 127K previous.