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Gold Price Primed To Extend Gains – Here’s Why

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Aayush Jindal

Key Highlights

  • Gold started a fresh increase above the $2,420 resistance.
  • A connecting bullish trend line is forming with support at $2,410 on the 4-hour chart.
  • Oil prices are consolidating losses below $80.00.
  • EUR/USD could aim for a steady increase above the 1.0885 resistance.

Gold Price Technical Analysis

Gold prices started a fresh increase above the $2,385 resistance against the US Dollar. It traded above the $2,400 zone to move into the green zone.

The 4-hour chart of XAU/USD indicates that the price settled nicely above the $2,400 level, the 100 Simple Moving Average (red, 4 hours), and the 200 Simple Moving Average (green, 4 hours).

It traded as high as $2,449 and recently there was a downside correction. The price dipped below the $2,420 support and tested the 50% Fib retracement level of the upward move from the $2,370 swing low to the $2,449 high.

There is also a major bullish trend line forming with support at $2,410 on the same chart. A downside break below the $2,410 support might call for more downsides. The next major support is near the $2,385 level. Any more losses might send Gold prices toward $2,350.

On the upside, immediate resistance is at $2,435. The first major resistance is now near $2,450, above which the price could accelerate higher toward the $2,462 level.

Looking at Oil, the bears are still in control, and they could aim for another decline unless there is a move above the $81.20 resistance in the near term.

Economic Releases to Watch Today

  • UK Consumer Price Index for April 2024 (YoY) – Forecast +2.1%, versus +3.2% previous.
  • UK Core Consumer Price Index for April 2024 (YoY) – Forecast +3.6%, versus +4.2% previous.
  • US Existing Home Sales for April 2024 (MoM) - Forecast -1.2%, versus -4.3% previous.
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