Technical Analysis:
XAU/USD is currently trading at $2735.30, after encountering resistance near $2740. The price is holding above both the 50-period Weighted Moving Average (WMA) at $2732.60 and the 200-period WMA at $2718.95, signaling that the overall bullish trend is still intact. The recent pullback from the $2740 resistance suggests that a period of consolidation might be forming before the next significant move.
The key resistance level remains at $2740. A successful breakout above this level could open the door for further gains towards $2760. On the downside, if the price fails to maintain above the 50-WMA, we could see a pullback to the 200-WMA at $2718.95 or even lower towards $2700.
- Support: Immediate support lies at $2730, followed by the 200-WMA at $2718.95.
- Resistance: The key resistance is at $2740, with the next target at $2760.
Moving Averages:
The price is trading above both the 50-period and 200-period WMAs, which confirms the continuation of the bullish trend. A break below the 50-WMA could signal a potential correction, but as long as the price holds above the 200-WMA, the trend remains bullish.
Volume:
Rising volume near the resistance zone suggests growing market participation, which could support a breakout. If volume increases on a breakout above $2740, this could signal the next leg higher in the bullish trend.
Key Levels to Watch:
- Support: $2730 (immediate support), $2718.95 (200-WMA), $2700 (psychological level)
- Resistance: $2740 (key resistance), $2760 (next upside target)
Outlook:
XAU/USD remains in a bullish trend as long as it stays above the 50-WMA at $2732.60. A breakout above $2740 would confirm further upside toward $2760. However, failure to break this resistance could lead to a pullback to $2730 or even $2718.95, offering potential buying opportunities in the broader uptrend.
Fundamental Analysis:
Gold continues to benefit from global economic uncertainty, with inflationary pressures and geopolitical tensions driving demand for safe-haven assets. The Federal Reserve’s hawkish stance on interest rates has kept the US Dollar strong, but any signs of dovishness could trigger further buying in gold. Market participants will be closely watching inflation data and central bank statements for cues on the next directional move for XAU/USD.
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