Gold Shows Signs of Recovery Around $1,940 Mark
Gold exhibited positive momentum during early Monday trading in the Asian market. The consolidation of the US Dollar provided some support for the precious metal. However, the higher yields on US Treasury bonds may limit gold's upward movement in the next session. The XAU/USD is currently trading around $1,940, marking a 0.22% increase for the day.
The daily chart for XAU/USD indicates a retesting by the bullish trend, as the pair aims to surpass the 23.6% Fibonacci retracement level of the rise from $1,810.41 to $1,909.34, targeting $1,962.20. While it exhibits positive developments, there are also lower highs and lower lows forming as it develops below the rising 20-day Simple Moving Average (SMA). Additionally, technical indicators show a slight uptrend, albeit in neutral territory.
Looking ahead on the 4-hour chart, XAU/USD encountered sellers around the descending 20-day SMA, extending its slide below the flat 100-day SMA. A breakthrough above these indicators could encourage buyers, leading to higher profits during the day. Meanwhile, technical indicators are pointing north in negative territory.
Support Levels: $1,945.20, $1,933.20, $1,923.10
Resistance Levels: $1,965.30, $1,978.30, $1,989.00
The daily chart for XAU/USD indicates a retesting by the bullish trend, as the pair aims to surpass the 23.6% Fibonacci retracement level of the rise from $1,810.41 to $1,909.34, targeting $1,962.20. While it exhibits positive developments, there are also lower highs and lower lows forming as it develops below the rising 20-day Simple Moving Average (SMA). Additionally, technical indicators show a slight uptrend, albeit in neutral territory.
Looking ahead on the 4-hour chart, XAU/USD encountered sellers around the descending 20-day SMA, extending its slide below the flat 100-day SMA. A breakthrough above these indicators could encourage buyers, leading to higher profits during the day. Meanwhile, technical indicators are pointing north in negative territory.
Support Levels: $1,945.20, $1,933.20, $1,923.10
Resistance Levels: $1,965.30, $1,978.30, $1,989.00
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