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Gold Recovery Faces A Reality Check Ahead Of FOMC Minutes

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Aayush Jindal

Key Highlights

  • Gold started a recovery wave from the $3,950 region.
  • A major bearish trend line is forming with resistance at $4,180 on the 4-hour chart.
  • WTI Crude Oil started a consolidation phase below the $72.50 resistance.
  • Bitcoin recovered some losses and tested the $65,000 resistance.

Gold Price Technical Analysis

Gold found bids near $3,940 and $3,950 against the US Dollar. The price started a correction wave and climbed above the $4,000 resistance.

The 4-hour chart of XAU/USD indicates that the price surpassed $4,080, $4,120, and the 50% Fibonacci retracement level of the downward move from the $4,382 swing high to the $3,941 swing low. It even cleared the 100 Simple Moving Average (red, 4 hours) but stayed below the 200 Simple Moving Average (green, 4 hours).

The bears seem to be active below $4,200. There is also a major bearish trend line forming with resistance at $4,180 and the 61.8% Fibonacci retracement.

If the bears remain in action, the price could revisit the $4,095 support. The first major support sits at $4,045. The next support could be $4,000, below which the price might slide to $3,940.

The main support sits at $3,880. Any more losses might call for a test of $3,650 or even $3,500 in the coming days. On the upside, immediate resistance could be $4,185. The next major resistance might be near a trend line at $4,200.

A clear move above $4,200 could open the doors for more upside. In the stated case, the bulls could aim for a move toward $4,275 or even $4,300. Any more gains might send the price toward the $4,350 level.

Looking at WTI Crude Oil, the price started a minor recovery wave, but it might face resistance near $72.50 and $73.20.

Economic Releases to Watch Today

  • FOMC Meeting Minutes.
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