- Gold prices could extend gains above the $2,000 resistance.
- A connecting bullish trend line is forming with support near $1,968 on the 4-hour chart.
- Crude oil prices trimmed gains and traded below $85.00.
- The US GDP could grow 4.2% in Q3 2023 (Preliminary).
Gold Price Technical Analysis
Gold prices remained in strong demand due to the Israeli–Hamas war. The price rallied above the $1,920 and $1,950 resistance levels.
The 4-hour chart of XAU/USD indicates that the price settled above the $1,965 resistance, the 100 Simple Moving Average (red, 4 hours), and the 200 Simple Moving Average (green, 4 hours).
It even spiked toward the $2,000 level before the price started a minor downside correction. The price dipped below the $1,965 level. It tested the 50% Fib retracement level of the upward move from the $1,908 swing low to the $1,997 high.
There is also a connecting bullish trend line forming with support near $1,968 on the same chart. The current price action suggests there are high chances of more upsides above $1,980.
Immediate resistance is near the $1,995 level. The first major resistance is $2,000. An upside break above the $2,000 level could send the price soaring toward the $2,050 resistance. The next major resistance is near the $2,080 level, above which Gold could revisit the key $2,120 resistance zone.
On the downside, the price might find support near the $1,968 level. The next key support is near the gap area at $1,950. If the bulls fail to protect the $1,950 support, there is a risk of a major decline. In the stated case, the price could decline toward the $1,930 level.
Looking at crude oil prices, there was a downside correction and the bears were able to push the price below the $85 level.
Economic Releases to Watch Today
- US Initial Jobless Claims - Forecast 208K, versus 198K previous.
- US Gross Domestic Product for Q3 2023 (Preliminary) – Forecast 4.2% versus previous 2.1%.