Key Highlights
- Gold price is forming a support base above the $1,975 zone.
- It broke a key contracting triangle with resistance near $1,995 on the 4-hour chart.
- USD/JPY corrected lower after trading as high as 137.77.
- Crude oil prices gained bearish momentum and declined below $75.
Gold Price Technical Analysis
Gold price remained stable near the $1,975 zone against the US Dollar. The price formed a base above $1,980 and recently started a decent increase.
The 4-hour chart of XAU/USD indicates that the price remained well-bid above the 200 Simple Moving Average (green, 4 hours). The price gained strength after it broke the $1,992 resistance.
It even cleared a key contracting triangle with resistance near $1,995 on the same chart and the 100 Simple Moving Average (red, 4 hours). Immediate resistance near the $2,010 level.
The next major resistance is near the $2,020 level. Any more gains might send the price toward the $2,050 resistance level. Intermediate resistance might be at $2,035.
If there is no move above $2,020, the price might resume its decline. The main support seems to be forming near the $1,980 level and the 200 Simple Moving Average (green, 4 hours).
A close below the 200 Simple Moving Average (green, 4 hours) could spark more bearish moves. In the stated case, the price may perhaps decline toward the $1,950 level.
Looking at crude oil prices, there was a sharp decline below the $75 support and it seems like the bears are not done yet.
Economic Releases to Watch Today
- UK Consumer Price Index for March 2023 (YoY) – Forecast +9.8%, versus +10.4% previous.
- UK Core Consumer Price Index for March 2023 (YoY) – Forecast +6.0%, versus +6.2% previous.
- Euro Zone CPI for March 2023 (YoY) – Forecast +6.9%, versus +6.9% previous.
- Euro Zone CPI for March 2023 (MoM) – Forecast +0.9%, versus +0.9% previous.
