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Gold’s Record-Breaking Run—Trade Tensions Light the Fire

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Aayush Jindal

Key Highlights

  • Gold started a fresh increase and traded to a new record high above $3,350.
  • The current price on the 4-hour chart is still bullish above $3,250.
  • EUR/USD is eyeing more gains above the 1.1420 resistance zone.
  • WTI Crude Oil prices could start a recovery wave if there is a move above the $64.00 resistance.

Gold Price Technical Analysis

Gold prices started a fresh increase from the $3,120 support zone. The recent recession fears and trade war sparked more upsides above the $3,250 resistance.

The 4-hour chart of XAU/USD indicates that the price gained pace for a move above the $3,300 level. The price settled well above the 200 Simple Moving Average (green, 4 hours) and the 100 Simple Moving Average (red, 4 hours).

A new record high was formed near $3,357 and the price started a consolidation phase. The current price action is still bullish and the bulls could aim for a fresh increase.

On the upside, immediate resistance is near the $3,350 level. The next major resistance sits near the $3,365 level. A clear move above the $3,365 resistance could open the doors for more upsides. The next major resistance could be $3,380, above which the price could rally toward the milestone level of $3,420.

On the downside, initial support is near the $3,295 level. The first key support is near $3,255. The next major support is near the $3,240 level.

The main support is now $3,222. A downside break below the $3,222 support might call for more downsides. The next major support is near the $3,150 level.

Looking at EUR/USD, the pair started a short-term downside correction and might soon aim for a fresh increase if it clears the 1.1420 resistance.

Economic Releases to Watch Today

  • ECB Interest Rate Decision - Forecast 2.25%, versus 2.5% previous.
  • US Initial Jobless Claims - Forecast 225K, versus 223K previous.
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