Gold Price Analysis: XAU/USD remains confined in a range around $1865-70 region
|- Gold was seen consolidating its recent gains to two-week tops.
- The set-up supports prospects for a further appreciating move.
- Bulls might wait for a move beyond the $1880 congestions zone.
Gold remained confined in a narrow trading band through the mid-European session and consolidated this week's solid rebound from the vicinity of the $1800 mark.
Currently hovering around the $1872 region, any subsequent positive move is likely to confront stiff resistance near the $1880 congestion zone. The mentioned barrier coincides with the 50% Fibonacci level of the $1959-$1803 recent leg down and should act as a key pivotal point for short-term traders.
Meanwhile, technical indicators on hourly charts maintained their bullish bias and have just started moving into the positive territory on the daily chart. The set-up supports prospects for additional gains amid sustained US dollar selling, which tends to benefit the dollar-denominated commodity.
That said, bulls might still wait for a sustained move beyond the $1880 hurdle before placing fresh bets and positioning for any further appreciating move. The XAU/USD might then accelerate the positive momentum and aim back to reclaim the $1900 mark, representing the 61.8% Fibo. level resistance.
On the flip side, the 38.2% Fibo. level, around the $1863-62 region, now seems to protect the immediate downside. Any further decline is likely to attract some dip-buying around the $1855 region. This, in turn, should help limit the downside near the 23.6% Fibo. level, around the $1840 area.
XAU/USD 4-hourly chart
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.