Key Highlights
- Gold gained pace and traded above the $2,500 resistance.
- A connecting bullish trend line is forming with support at $2,495 on the 4-hour chart.
- Oil prices faced resistance near $78.40 and trimmed some gains.
- The US Gross Domestic Product could grow by 2.8% in Q2 2024 (Preliminary).
Gold Price Technical Analysis
Gold prices started a steady increase above $2,450 against the US Dollar. The price even cleared the $2,480 and $2,500 resistance levels.
The 4-hour chart of XAU/USD indicates that the price settled above the $2,485 level, the 100 Simple Moving Average (red, 4 hours), and the 200 Simple Moving Average (green, 4 hours). It even surpassed the $2,520 resistance zone.
Finally, the bears appeared near the $2,530 zone. The price is now consolidating above a connecting bullish trend line with support at $2,495 on the same chart.
The main support is now near $2,475. A downside break below the $2,475 support might call for more downsides. The next major support is near the $2,445 level and the 200 Simple Moving Average (green, 4 hours).
Any more losses might send gold prices toward $2,400. On the upside, immediate resistance is near the $2,515 level. The first major resistance sits near the $2,530 level.
A clear move above the $2,530 resistance could open the doors for more upsides. The next major resistance could be near $2,550, above which the price could accelerate higher toward the $2,565 level. Any more gains might send Gold toward the $2,580 resistance.
Looking at Oil, the price struggled to clear the $78.40 resistance zone and recently corrected some gains to trade below $76.00.
Economic Releases to Watch Today
- US Gross Domestic Product for Q2 2024 (Preliminary) – Forecast 2.8% versus previous 2.8%.
- US Initial Jobless Claims – Forecast 232K, versus 232K previous.
