(function() { var didInit = false; function initMunchkin() { if(didInit === false) { didInit = true; Munchkin.init('105-GAR-921'); } } var s = document.createElement('script'); s.type = 'text/javascript'; s.defer = true; s.src = '//munchkin.marketo.net/munchkin.js'; s.onreadystatechange = function() { if (this.readyState == 'complete' || this.readyState == 'loaded') { initMunchkin(); } }; s.onload = initMunchkin; document.getElementsByTagName('head')[0].appendChild(s); })();(function(h,o,t,j,a,r){ h.hj=h.hj||function(){(h.hj.q=h.hj.q||[]).push(arguments)}; h._hjSettings={hjid:1422437,hjsv:6}; a=o.getElementsByTagName('head')[0]; r=o.createElement('script');r.defer=1; r.src=t+h._hjSettings.hjid+j+h._hjSettings.hjsv; a.appendChild(r); })(window,document,'https://static.hotjar.com/c/hotjar-','.js?sv=');

Gold Price Sets New Record, More Upsides Possible?

Article background

Aayush Jindal

Key Highlights

  • Gold rallied further and spiked above the $2,350 resistance level.
  • A connecting bullish trend line is forming with support at $2,320 on the 4-hour chart.
  • EUR/USD is facing a major hurdle near the 1.0880 resistance.
  • Bitcoin price regained strength for a move above the $71,000 resistance.

Gold Price Technical Analysis

Gold prices started a fresh increase from the $2,200 support against the US Dollar. The bulls cleared the $2,250 resistance to start a strong rally.

The 4-hour chart of XAU/USD indicates that the price settled above the $2,250 level, the 100 Simple Moving Average (red, 4 hours), and the 200 Simple Moving Average (green, 4 hours).

The bulls were able to pump the price above the $2,300 and $2,320 levels. Finally, the price spiked above the $2,350 level. A new high was formed at $2,354 and the price is now consolidating gains.

There was a move below the $2,330 level. There was a spike toward the 38.2% Fib retracement level of the upward move from the $2,267 swing low to the $2,354 high. The first major support sits at $2,310. There is also a connecting bullish trend line forming with support at $2,320 on the same chart.

The trend line is close to the 50% Fib retracement level of the upward move from the $2,267 swing low to the $2,354 high. Any more losses might call for a move toward the $2,280 level.

On the upside, the price is facing resistance near the $2,345 level. The main resistance is now forming near $2,355, above which the price could accelerate higher toward $2,380.

Looking at Bitcoin, there was a strong upward move above the $70,000 zone and there are chances of more upsides.

Economic Releases to Watch Today

  • ECB Bank Lending Survey.
Great