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Gold Price Could Retest The Key $1,700 Resistance

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Aayush Jindal

Key Highlights

  • Gold price is back above the $1,620 and $1,640 resistance levels.
  • There was a break above a contracting triangle with resistance near $1,605 on the 4-hours chart of XAU/USD.
  • Key hurdles on the upsides are near $1,680 and $1,700.
  • EUR/USD and GBP/USD are trading above key supports (1.0750 and 1.2100 respectively).

Gold Price Technical Analysis

In the past few days, gold price regained bullish momentum above the $1,600 pivot level against the US Dollar. The price broke the $1,620 and $1,640 resistance levels to move into the positive zone.

The 4-hours chart of XAU/USD indicates that the price settled nicely above the $1,640 barrier and trading well above both the 200 simple moving average (4-hours, green) and the 100 simple moving average (red, 4-hours).

During the recent rise, there was a break above a contracting triangle with resistance near $1,605. The price climbed above the $1,643 swing high and even tested the 1.236 Fib extension level of the key decline from the $1,643 high to $1,568 low.

It has opened the doors for more gains in the coming days above $1,680. The first hurdle is near the $1,690 level since it is close to the 1.618 Fib extension level of the key decline from the $1,643 high to $1,568 low.

The main resistance is near the $1,700 level, above which gold price is likely to accelerate higher towards the $1,715 and $1,720 levels.

If there is a downside correction, the previous resistance near $1,640 could provide support. The main support is now near the $1,605 level and the 200 simple moving average (4-hours, green).

Looking at EUR/USD, the pair managed to stay above the 1.0750 support area. Besides, GBP/USD maintained a bullish tone above the 1.2100 pivot and support area.

Economic Releases to Watch Today

  • FOMC Meeting Minutes.
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