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Gold Price Extends Rally Above $2K, Dollar Gains

Key Highlights

  • Gold price extended rally above the key $2,000 region.
  • A crucial bullish trend line is forming with support near $1,935 on the 4-hours chart.
  • EUR/USD consolidated near 1.0800, and GBP/USD seems to be facing selling pressure.
  • Crude oil price could attempt more gains above $130.


Gold Price Technical Analysis

Gold price started another increase after it broke the $1,950 resistance against the US Dollar. The price even cleared the $1,980 level to move into a positive zone.

The 4-hours chart of XAU/USD indicates that the price gained pace for a move above the main $2,000 resistance. The price traded to a new multi-month high above $2,070.

There was also a close above $2,000, the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours). The current price action suggests high chances of more gains above the $2,050 level.

The next key resistance could be $2,060, above which the bulls might aim a test of the $2,075 resistance zone (high formed in 2020). Any more gains could push the price above $2,120.

If not, the price might correct lower and trade below the $2,020 level. The next major support is near $1,980, below which the price might decline to $1,950. There is also a crucial bullish trend line forming with support near $1,935 on the same chart.

Looking at EUR/USD, the pair could recover, but upsides might be limited above 1.1120. Besides, GBP/USD remains at a risk of a move towards the 1.3000 zone.

Economic Releases to Watch Today

  • EIA Crude Oil Stocks Change – Forecast -0.833M, versus -2.597M previous.