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Gold Price Faces Uphill Task Ahead of US GDP

Key Highlights

  • Gold price is struggling to recover above the $1,810 resistance.
  • It broke a major bearish line with resistance near $1,792 on the 4-hours chart.
  • EUR/USD is consolidating below the 1.1320 and 1.1350 resistance levels.
  • The US GDP could grow 2.1% in Q3 2021.


Gold Price Technical Analysis

This past week, gold extended decline below the $1,780 support against the US Dollar. The price found support near $1,750 before it started an upside correction.

The 4-hours chart of XAU/USD indicates that the price recovered above the $1,780 resistance level. The price climbed above the 23.6% Fib retracement level of the downward move from the $1,877 swing high to $1,752 low.

Besides, there was a break above a major bearish line with resistance near $1,792 on the same chart. However, the price struggled to settle above $1,810 and the 200 simple moving average (green, 4-hours).

The 50% Fib retracement level of the downward move from the $1,877 swing high to $1,752 low also acted as a resistance.

A clear break above $1,810 could send the price toward the $1,830 resistance zone in the near term. The next key resistance is near the $1,850 level.

On the downside, the price might remain supported near $1,780. The main support is near $1,760, below which there is a risk of a move towards $1,720.

Looking at EUR/USD, the pair is consolidating below the 1.1350 resistance level. Besides, GBP/USD could also recover if it settles above 1.3300.

Economic Releases to Watch Today

  • UK GDP for Q3 2021 (QoQ) - Forecast +1.3%, versus +1.3% previous.
  • US GDP for Q3 2021 – Forecast 2.1% versus previous 2.1%.