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Gold Price Dips But This Support Is The Key

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Aayush Jindal

Key Highlights

  • Gold price started a downside correction from the $2,050 zone.
  • It traded below a major bullish trend line with support at $2,020 on the 4-hour chart.
  • EUR/USD remained well-bid above the 1.0880 support zone.
  • Crude oil prices started a downside correction below $81.20.

Gold Price Technical Analysis

Gold price struggled to clear the $2,050 level against the US Dollar. The price traded as high as $2,048 and recently started a downside correction.

The 4-hour chart of XAU/USD indicates that the price declined below the $2,020 support. It also traded below a major bullish trend line with support at $2,020. The decline was such that the price spiked below the $2,000 level and tested the 100 Simple Moving Average (red, 4 hours).

It seems like there is major support forming near the $1,980 level. A close below the $1,980 support might send the price toward the $1,950 support or the 200 Simple Moving Average (green, 4 hours).

Immediate resistance near the $2,015 level. The next major resistance is near the $2,020 level. Any more gains might send the price toward the $2,050 level.

To continue higher, the bulls need to clear the $2,050 resistance region. If they succeed, the price might start a steady increase toward $2,080. In the stated case, the price may perhaps rise toward the $2,120 level in the coming sessions.

Looking at EUR/USD, the pair was supported above the 1.0880 level and it seems like the bulls might attempt a fresh increase.

Economic Releases to Watch Today

  • UK Consumer Price Index for March 2023 (YoY) – Forecast +9.8%, versus +10.4% previous.
  • UK Core Consumer Price Index for March 2023 (YoY) – Forecast +6.0%, versus +6.2% previous.
  • Euro Zone CPI for March 2023 (YoY) - Forecast +6.9%, versus +6.9% previous.
  • Euro Zone CPI for March 2023 (MoM) - Forecast +0.9%, versus +0.9% previous.
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