Technical Outlook Of Gold By FXStreet’s Haresh Menghani

Gold price is seen consolidating its recent gains to a nearly three-week high touched on Friday. FXStreet’s Haresh Menghani analyzes XAU/USD’s technical outlook.

The $1,842-$1,841 region seems to protect the immediate downside

“Any subsequent move up is more likely to confront resistance near the $1,865-$1,870 confluence. A sustained strength beyond could prompt technical buying and lift XAU/USD to 50% Fibo. level, which coincides with the $1,885-$1,886 horizontal barrier. This is followed by 61.8% Fibo. level, around the $1,900 round figure, which, if cleared decisively, might shift the near-term bias in favour of bullish traders and pave the way for some meaningful upside.”

“The 23.6% Fibo. level, around the $1,842-$1,841 region, now seems to protect the immediate downside ahead of the $1,821-$1,820 horizontal support. Failure to defend the said support levels could drag the Gold price back to the $1,805-$1,804 area. Some follow-through selling below the $1,800 mark, or the 100-day SMA, will be seen as a fresh trigger for bearish traders and make the XAU/USD vulnerable to accelerate the fall.”