Key Highlights
- Gold seems to be forming a base above the $2,285 level.
- A key contracting triangle is forming with resistance at $2,332 on the 4-hour chart.
- EUR/USD is recovering higher toward the 1.0780 resistance.
- Oil prices gained bullish momentum above the $80.00 resistance.
Gold Price Technical Analysis
Gold prices remained well-bid above the $2,280 zone against the US Dollar. There was a minor recovery wave above the $2,300 and $2,310 levels.
The 4-hour chart of XAU/USD indicates that the price climbed higher and tested the $2,335 resistance zone. However, the bears were active near the 100 Simple Moving Average (red, 4 hours) and the 200 Simple Moving Average (green, 4 hours).
There is also a key contracting triangle forming with resistance at $2,332 on the same chart. A clear move above the triangle resistance and the 100 Simple Moving Average (red, 4 hours) could open the doors for a steady increase.
The first major resistance is now near $2,340, above which the price could accelerate higher toward the $2,365 level. Any more gains might send Gold toward the $2,385 resistance.
On the downside, there is a key support forming near the $2,310 level. A downside break below the $2,310 support might call for more downsides. The next major support is near the $2,300 level. Any more losses might send Gold prices toward $2,285.
Looking at Oil, the bulls were able to push the price above the $80.00 resistance and they could aim for more upsides.
Economic Releases to Watch Today
- UK Consumer Price Index for May 2024 (YoY) – Forecast +2.2%, versus +2.3% previous.
- UK Core Consumer Price Index for May 2024 (YoY) – Forecast +3.5%, versus +3.9% previous.
