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Gold Price Rallies Further Above $2K, Dollar Struggles

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Aayush Jindal

Key Highlights

  • Gold price gained pace above the $2,000 resistance.
  • It broke a major contracting triangle with resistance near $1,985 on the 4-hours chart.
  • EUR/USD started a consolidation phase above the 1.0880 zone.
  • USD/JPY is slowly moving lower toward the 129.50 support.

Gold Price Technical Analysis

Gold price remained well-bid above the $1,950 support zone against the US Dollar. The price started a fresh increase above the $1,980 resistance.

The 4-hours chart of XAU/USD indicates that the price cleared many hurdles near the $1,980 and $1,988 levels. It even settled above the 100 Simple Moving Average (red, 4 hours), and the 200 Simple Moving Average (green, 4 hours).

Besides, the price broke a major contracting triangle with resistance near $1,985 on the same chart. Finally, there was a clear move above the $2,000 resistance zone.

It tested the $2,030 zone before the bears appeared. Immediate resistance near the $2,035 level. The next major resistance is near the $2,050 level. Any more gains might send the price toward the $2,065 level.

On the downside, initial support is near the $2,000 level. The next major support is near the $1,980 level, below which there is a risk of a move toward the $1,965 level.

The next major support is near the $1,950 level, below which gold price might struggle to stay above the $1,932 zone. In the stated case, gold price could slide towards the $1,910 support.

Looking at EUR/USD, the pair failed to test the 1.1000 resistance zone and recently started a consolidation phase.

Economic Releases to Watch Today

  • US Initial Jobless Claims - Forecast 200K, versus 198K previous.
  • Canada’s employment Change for March 2023 – Forecast 12K, versus 21.8K previous.
  • Canada’s Unemployment Rate April 2023 - Forecast 5.1%, versus 5.0% previous.
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