Gold Price Rally Pauses But Not Likely Over

Key Highlights

  • Gold prices rallied over the $2,000 and $2,020 resistance levels.
  • A key bullish trend line is forming with support near $2,025 on the 4-hour chart.
  • Crude oil prices are attempting a recovery wave from the $72.00 zone.
  • EUR/USD climbed above the 1.1000 level before the bears appeared.

Gold Price Technical Analysis

Gold remained in a positive zone above the $1,965 level. There was a steady increase above the $1,980 and $1,985 resistance levels to start a fresh rally.

The 4-hour chart of XAU/USD indicates that the price surged above the $2,000 and $2,020 resistance levels. The price even settled above $2,000, the 100 Simple Moving Average (red, 4 hours), and 200 Simple Moving Average (green, 4 hours).

Finally, the price tested the $2,050 resistance zone. If the bulls remain in action, the price could rise further toward the $2,062 level.

An upside break above the $2,062 level could send the price soaring toward the $2,080 resistance. The next major resistance is near the $2,088 level, above which Gold could test $2,100.

On the downside, the first major support is near the $2,032 level. The main support sits near the $2,025 level. There is also a key bullish trend line forming with support near $2,025 on the same chart. Any more losses might call for a move toward the $2,000 level.

Looking at crude oil prices, the bulls appeared near the $72 zone and the price is now attempting a recovery wave.

Economic Releases to Watch Today

  • US Initial Jobless Claims – Forecast 220K, versus 209K previous.
  • US Pending Home Sales for Oct 2023 (YoY) – Forecast -2.0%, versus 1.1% previous.
  • Canadian GDP for Q3 2023 (Annualized) – Forecast +0.2%, versus -0.2% previous.

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