Key Highlights
- Gold rallied to a new all-time high above the $2,660 level.
- A major bullish trend line is forming with support at $2,590 on the 4-hour chart.
- Oil prices might struggle to settle above the $73.50 resistance zone.
- EUR/USD is consolidating gains above the 1.1080 support level.
Gold Price Technical Analysis
Gold prices started a fresh increase above the $2,580 level against the US Dollar. The price cleared many hurdles near $2,600 to extend its rally.
The 4-hour chart of XAU/USD indicates that the price settled well above the 100 Simple Moving Average (red, 4 hours) and the 200 Simple Moving Average (green, 4 hours). It gained steadily after the Fed rate cut and traded to a new all-time high above $2,660.
On the upside, immediate resistance is near the $2,665 level. The first major resistance sits near the $2,680 level. A clear move above the $2,680 resistance could open the doors for more upsides. The next major resistance could be near $2,700, above which the price could rally toward the $2,750 level.
On the downside, initial support is near the $2,635 level. The first major support is near the $2,605 level. The main support is now near $2,590. There is also a major bullish trend line forming with support at $2,590 on the same chart.
A downside break below the $2,590 support might call for more downsides. The next major support is near the $2,550 level and the 100 Simple Moving Average (red, 4 hours).
Looking at Oil, the price started a recovery wave above the $70.00 level, but it might struggle to settle above the $73.50 resistance.
Economic Releases to Watch Today
- US New Home Sales for August 2024 (MoM) – Forecast +5.8% versus +10.6% previous.
