Gold bulls take a breather around $1,970 during Thursday’s sluggish Asian session, after posting the biggest daily gain in a week during the volatile Wednesday. Federal Reserve announcements, United States Treasury Secretary Janet Yellen’s comments weigh on yields and propel XAU/USD.
The XAU/USD pair bottomed at $1,934.24 a troy ounce, a handful of cents above the 38.2% retracement of the latest daily advance measured between $1,809.38 and $2,009.77 at $1,932.65. It trades in positive territory ahead of the Fed announcement, and technical readings in the daily chart skew the risk to the upside. The bright metal develops above bullish moving averages, with the 20 Simple Moving Average (SMA) heading firmly north above the longer ones. Finally, technical indicators pared their declines well into positive territory after correcting extreme overbought readings.
The 4-hour chart, on the other hand, shows limited bullish potential. The pair keeps trading below its 20 SMA, which currently converges with the 23.6% retracement of the aforementioned advance at $1,962.30. The longer moving averages develop far below the current level, while technical indicators stand directionless within negative levels. A steeper recovery towards the $2,000 area seems likely if XAU/USD advances above the mentioned Fibonacci resistance, while bears will dominate the metal on a break below the daily low.
Support levels: 1,932.65 1,921.80 1,907.45
Resistance levels: 1,962.30 1,979.10 1,988.30
Trading recommendation:
Gold Sell 1972 - 1973
Stoploss : 1980
Take profit 1: 1965
Take Profit 2: 1960
Take profit 3: 1955
Buy GOLD 1935 - 1933
Stop Loss: 1929
Take profit 1: 1945
Take profit 2:1950
Take profit 3: 1955
Note: Always install Stoploss and Takeprofit to ensure safety in trading
The XAU/USD pair bottomed at $1,934.24 a troy ounce, a handful of cents above the 38.2% retracement of the latest daily advance measured between $1,809.38 and $2,009.77 at $1,932.65. It trades in positive territory ahead of the Fed announcement, and technical readings in the daily chart skew the risk to the upside. The bright metal develops above bullish moving averages, with the 20 Simple Moving Average (SMA) heading firmly north above the longer ones. Finally, technical indicators pared their declines well into positive territory after correcting extreme overbought readings.
The 4-hour chart, on the other hand, shows limited bullish potential. The pair keeps trading below its 20 SMA, which currently converges with the 23.6% retracement of the aforementioned advance at $1,962.30. The longer moving averages develop far below the current level, while technical indicators stand directionless within negative levels. A steeper recovery towards the $2,000 area seems likely if XAU/USD advances above the mentioned Fibonacci resistance, while bears will dominate the metal on a break below the daily low.
Support levels: 1,932.65 1,921.80 1,907.45
Resistance levels: 1,962.30 1,979.10 1,988.30
Trading recommendation:
Gold Sell 1972 - 1973
Stoploss : 1980
Take profit 1: 1965
Take Profit 2: 1960
Take profit 3: 1955
Buy GOLD 1935 - 1933
Stop Loss: 1929
Take profit 1: 1945
Take profit 2:1950
Take profit 3: 1955
Note: Always install Stoploss and Takeprofit to ensure safety in trading
