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Gold Weekly Technical Outlook: Neutral
- Gold prices rebound off key support as bears bounce off 1640.
- USD strength holds XAU/USD at bay as technical levels hold
- Gold futures firm above the April 2020 low of 1638.2
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Gold (XAU/USD) Technical Analysis
Gold prices have continued to dwindle as USD strength drives XAU/USD lower.
With a strong bearish trend currently intact, a temporary retest of 1622 allowed bulls to push prices higher before running into resistance at 1738.7 (trendline resistance).
After a strong decline from the March high of 2078.8, a strong US Dollar and higher rates have continued to weigh on the precious metal, driving prices back towards the 1640 – 1650 zone.
Gold (XAU/USD) Weekly Chart
Chart prepared byTammy Da Costausing TradingView
As key Fibonacci levels continue to provide support and resistance for Gold, a break of the September low of 1622.2 would be required before bears can claim 1600. Meanwhile, with another narrow range forming between 1646 & 1738, a move higher could drive the upside move towards 1800.
Chart prepared byTammy Da Costausing TradingView
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Live now:
Oct 25
( 17:10 GMT )
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Gold (XAU/USD) Futures Daily Chart
Chart prepared byTammy Da Costausing TradingView
The remaining question is whether bears can break this support. The zone that runs from 1680-1700 has been in-play multiple times over the past couple of years, ever since gold topped-out in the summer of 2020. However, if prices hold below the psych level of 1650, it could be possible for bears to drive prices back towards 1600.
— Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
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