Gold (XAU/USD) Maintains Medium-Term Uptrend Despite Recent Slide

• Medium-term uptrend of Gold (XAU/USD) remains intact.
• Its recent slide of -1.7% from the 20 July 2023 high of US$1,987.53 has pull-backed close to its 50-day moving average.
• Short-term elements suggest a potential bullish reversal for Gold (XAU/USD) with key support at US$1,939.

This is a follow-up analysis of our prior report, “Resilient gold is supported by geopolitical risk” published on 11 July 2023. Click here for a recap.

Gold (XAU/USD) has staged the bullish breakout above US$1,940 and rallied to an intraday high of US$1,987.53 on 20 July 2023, just a whisker away from the US$1,990 resistance (former congestion support zone from 10 April 2023 to 16 May 2023).

 

The medium-term uptrend remains intact

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Fig 1: Gold (XAU/USD) medium-term trend of 25 Jul 2023 (Source: TradingView, click to enlarge chart)

Despite the recent slide of -1.7% from the 20 July 2023 high to print an intraday low of US$1,953.28, the medium-term uptrend phase of Gold (XAU/USD) in place since the 3 November 2022 low of US$1,616 remains intact as it price actions held right above the 50-day moving average at this time of the writing.