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Gold Price Prediction: XAUUSD is looking for confirmation above the $1,950 mark as it continues its upward trend. (DAILY CHART)
The XAU/USD pair is poised for confirmation above the $1,950 mark as it sustains its upward trend. Despite experiencing a brief consolidation after reaching a four-week high of $1,943, gold remains robustly above the crucial 20-Daily Moving Average (DMA) at $1,930. The 14-day Relative Strength Index (RSI) indicator supports further gains with an upward trajectory above the midline.
Key resistance levels lie at $1,947 and $1,953, with a breakthrough potentially leading to an uptrend targeting the supply zone between $1,970 and $1,980. However, failure to establish strong support above the 200 DMA at $1,930 may trigger a retracement towards the 100 DMA support at $1,923, with $1,912 serving as a potential target for Gold sellers. Traders are advised to monitor price action closely for confirmation of upward momentum or signs of a reversal.
Blog written by: Glow Node
technical analysis
The price of Gold reached a new four-week high of $1,943 early on Wednesday before experiencing a period of consolidation with upward momentum. Despite a slight pullback, the Gold price remains robustly above the crucial 20-Daily Moving Average (DMA) at $1,930, a level it convincingly breached earlier.
The 14-day Relative Strength Index (RSI) indicator is showing an upward trajectory above the midline, indicating the potential for further gains.
The next obstacle for the Gold price is located at the September 20 high of $1,947, and if it surpasses this level, it will test the September 1 high of $1,953. A sustained breakthrough above the latter could pave the way for a new uptrend targeting the supply zone between $1,970 and $1,980.
However, if the Gold price fails to establish strong support above the 200 DMA at $1,930, a retracement towards the 100 DMA support at $1,923 is likely. Going further downwards, Gold sellers will have their sights set on the low from the previous day, which was at $1,912.
Our analysis suggests that the Gold price has reached a four-week high and could continue its upward movement if it manages to breach key resistance levels. Conversely, a failure to hold above certain DMA levels may lead to a retracement towards lower support levels, with $1,912 being a potential target for Gold sellers.
