Gold Technical Outlook: Hey there, traders! If you’re keeping an eye on Gold (XAU/USD), you’re probably wondering where it’s headed next. Gold’s been a bit of a rollercoaster lately, with a quick bounce showing buyers are still in the game, even as the market mood improves. Let’s break down the short-term technical outlook in a way that’s easy to follow, so you can make sense of the charts and plan your next move.
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Daily Chart: Gold’s Tug-of-War
On the daily chart, Gold (XAU/USD) recently dipped below a key level—the 38.2% Fibonacci retracement of its recent drop from $3,452.51 to $3,247.83, which sits around $3,325. But sellers stepped in, capping any big moves higher around the 50% retracement level at $3,350. Right now, Gold is hovering just above a flat 20 Simple Moving Average (SMA), which is acting like a soft floor for the price.
The longer-term 100 and 200 SMAs are way below the current price, showing that Gold’s bigger trend is still upward. But here’s the catch: technical indicators like RSI and MACD are stuck in neutral territory, not giving us a clear signal on whether Gold’s ready to rally or retreat. It’s like Gold’s taking a breather, waiting for a push.
Near-Term View: Can Bulls Break Through?
Looking at the shorter-term picture, things get a bit trickier. For Gold to turn bullish and signal a stronger move up, it needs to break past the next big resistance—the 61.8% Fibonacci retracement at $3,374.56. That’s the level to watch if you’re hoping for a breakout. Until then, the upside looks limited, and the bears might still have some control.
4-Hour Chart: A Mild Bearish Vibe
Zooming into the 4-hour chart, we see a slightly bearish setup. The 20 SMA is sloping downward and sitting below a flat 200 SMA, which suggests sellers are still flexing their muscles. Technical indicators like RSI have bounced back a bit from near-oversold levels, but they’re still in negative territory. This tells us that while Gold’s trying to find its footing, the bears aren’t ready to give up just yet.
Key Levels to Watch
Here’s what you need to keep on your radar:
- Support: Around $3,325 (38.2% Fibonacci retracement). If Gold falls below this, the next stop could be lower.
- Resistance: $3,350 (50% Fibonacci retracement) and $3,374.56 (61.8% Fibonacci retracement). A break above $3,374.56 could spark some bullish action.
- 20 SMA: Acting as a dynamic support for now. If Gold stays above it, buyers might step in on dips.
What’s the Game Plan?
So, what’s the takeaway? Gold’s in a bit of a standoff. Buyers are showing interest by jumping in on dips, but sellers are keeping a lid on any big rallies. If you’re trading XAU/USD, keep an eye on those Fibonacci levels—especially $3,374.56 for a potential breakout. On the flip side, a drop below $3,325 could give bears the upper hand.
For now, patience is key. Watch the charts, stay alert for any big moves, and don’t forget to check the broader market mood, as it can sway Gold’s direction. Happy trading, and let’s see where Gold takes us next!