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Gold Price Trims Gains, $1,890 Is The Key

Aayush Jindal

Aayush Jindal

Key Highlights

  • Gold price started a fresh decline and traded below $1,920.
  • It traded below a key bullish trend line with support near $1,955 on the 4-hours chart.
  • EUR/USD extended decline below 1.0700, and GBP/USD traded below 1.2600.
  • Crude oil price declined below $100 but found support near $95.50.

 

Gold Price Technical Analysis

Gold price struggled to stay above the $1,950 support against the US Dollar. The price started a fresh decline after it settled below $1,950 and $1,940.

The 4-hours chart of XAU/USD indicates that the price traded below the $1,920 support zone. There was also a move below the $1,900 level, and the price settled below the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

It retested the key $1,890 support area, where the bulls emerged. It is now consolidating losses above $1,890. On the upside, the price might face resistance near $1,915.

The next key resistance could be $1,920, above which the bulls might aim a move towards the main resistance at $1,945. The 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours) are also near the $1,945 zone to act as a resistance.

If there is no upward move, the price could decline below the $1,890 support. The next major support is near the $1,865 level, below which it could even test $1,850.

Looking at EUR/USD, the pair is still trading in a bearish zone and there was a move below the 1.0700 support. Similarly, GBP/USD resumed its decline below 1.2600.

Economic Releases to Watch Today

  • Germany’s GfK Consumer Confidence for May 2022 – Forecast -16.0, versus -15.5 previous.
  • US Pending Home Sales for March 2022 (YoY) - Forecast -1.7%, versus -4.1% previous.