Key Highlights
- Gold prices rallied significantly after the Israeli–Hamas war intensified.
- A connecting bullish trend line is forming with support near $1,895 on the 4-hour chart.
- Today, US President Joe Biden is scheduled to visit Israel and Jordan.
- Growing border concerns amid the Israeli–Hamas war is keeping investors on the edge.
Gold Price Technical Analysis
Gold prices started a strong increase after the Israeli–Hamas war intensified. The price rallied above the $1,890 and $1,900 resistance levels to move into a positive zone. Today, US President Joe Biden is scheduled to visit Israel and Jordan, where he will address the ongoing conflict with both Israeli and Arab leaders.
The 4-hour chart of XAU/USD indicates that the price gained pace above the $1,900 resistance. It settled above the $1,900 level, the 100 Simple Moving Average (red, 4 hours), and the 200 Simple Moving Average (green, 4 hours).
It even surpassed the 76.4% Fib retracement level of the downward move from the $1,947 swing high to the $1,810 low. The current price action suggests there are high chances of more upsides above $1,930.
Immediate resistance is near the $1,935 level. The first major resistance is $1,950. An upside break above the $1,950 level could send the price soaring toward the $1,965 resistance. The next major resistance is near the $1,980 level, above which Gold could revisit the key $2,000 resistance zone.
On the downside, the price might find support near the $1,900 level. There is also a connecting bullish trend line forming with support near $1,895 on the 4-hour chart.
The next key support is near the gap area at $1,880. If the bulls fail to protect the $1,880 support, there is a risk of a major decline. In the stated case, the price could decline toward the $1,840 level.
Looking at crude oil prices, there was a decent increase toward the $88 resistance and the bulls might now aim a move toward $92.
Economic Releases to Watch Today
- UK Consumer Price Index for Sep 2023 (YoY) – Forecast +6.5%, versus +6.7% previous.
- UK Core Consumer Price Index for Sep 2023 (YoY) – Forecast +6.0%, versus +6.2% previous.
