Key Highlights
- Gold started a fresh surge and traded to a new high above $2,740.
- It cleared a major bearish trend line with resistance at $2,660 on the 4-hour chart.
- Oil prices corrected gains and traded below the $71.20 support zone.
- EUR/USD remains at risk of more losses below 1.0825.
Gold Price Technical Analysis
Gold prices formed a base above $2,650 against the US Dollar. The price started a fresh surge and cleared many hurdles near $2,700 to set a new all-time high.
The 4-hour chart of XAU/USD indicates that the price cleared a major bearish trend line with resistance at $2,660 to move into a positive zone. There was a sharp increase above the $2,715 and $2,720 levels.
The price even traded above $2,735 to set a new all-time high. The price is now consolidating gains and trading well above the 23.6% Fib retracement level of the upward move from the $2,601 swing low to the $2,740 high, the 100 Simple Moving Average (red, 4 hours), and the 200 Simple Moving Average (green, 4 hours).
On the downside, initial support is near the $2,710 level. The first major support is near the $2,688 level. It is close to the 38.2% Fib retracement level of the upward move from the $2,601 swing low to the $2,740 high.
The main support is now $2,650. A downside break below the $2,650 support might call for more downsides. The next major support is near the $2,620 level.
On the upside, immediate resistance is near the $2,740 level. The first major resistance sits near the $2,750 level. A clear move above the $2,750 resistance could open the doors for more upsides. The next major resistance could be near $2,765, above which the price could rally toward the $2,780 level.
Looking at Oil, the price struggled near the $72.50 resistance and now remains at risk of more losses below the $70.00 level.
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