- Gold poised for a rally towards the $2000 mark in the week ahead.
- Bulls charted a classic falling wedge breakdown on the daily chart.
- A break above 50-DMA resistance is critical to take on the further upside.
Following the settlement at two-week highs of $1930, Gold (XAU/USD) remains poised to extend the bullish momentum into a fresh week, courtesy of a classic technical breakout on the daily chart.
On Friday, the metal finally delivered a daily closing above the critical upside barrier at $1911, the confluence of the 21-daily moving average (DMA) and falling trendline resistance, yielding a falling wedge breakdown.
The technical breakout added credence to the bullish reversal from the two-month lows of $1849, opening doors for a retest of the $2000 mark in the coming week.
However, it's critical for the bulls to take out the fierce 50-DMA hurdle $1939.50. The 14-day Relative Strength Index (RSI) pierced above the midline, pointing north at 54.55, indicative of more scope to the upside.
Alternatively, any profit-taking declines could be limited by the initial support at the abovementioned resistance-turned-support at $1911, below which the 100-DMA cap at $1862 could come back into play ahead of the two-month troughs.
All in all, the path of least resistance is to the upside.
Gold: Daily chart
Gold Additional levels
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD shifts its outlook to bearish
![AUD/USD shifts its outlook to bearish](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/AUDUSD/australian-coins-3660349_XtraSmall.jpg)
AUD/USD remained under pressure near 0.6540 on Monday, still trading below the key 200-day SMA on the back of renewed strength in the US Dollar and further weakness in the commodity complex.
EUR/USD risks a deeper pullback below 1.0800
![EUR/USD risks a deeper pullback below 1.0800](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/colorful-euro-banknotes-3397150_XtraSmall.jpg)
A negative start to the week saw EUR/USD slipping back to the 1.0800 region, breaking below the key 200-day SMA (1.0820) and exposing further weakness in the short-term horizon.
Gold accelerates south after losing $2,400
![Gold accelerates south after losing $2,400](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/stacks-of-gold-bars-19033163_XtraSmall.jpg)
Gold started the week on a bullish note as markets reacted to escalating tensions in the Middle East. After rising above $2,400, however, XAU/USD retreated below this level, pressured by the renewed US Dollar strength ahead of this week's critical events.
Ripple lawsuit could end in a ruling or settlement this week, final showdown sees XRP sustain above $0.60
![Ripple lawsuit could end in a ruling or settlement this week, final showdown sees XRP sustain above $0.60](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/cryptos_XtraSmall.jpg)
Ripple (XRP) lawsuit brought by the Securities & Exchange Commission could end in July 2024. XRP traders are watching the lawsuit closely for updates on settlement or a final ruling by Judge Analisa Torres.
Are government statistics concealing the truth about the economy?
![Are government statistics concealing the truth about the economy?](https://editorial.fxstreet.com/images/Macroeconomics/EconomicIndicator/Prices/psychological-pricing-gm489806764-74871143_XtraSmall.jpg)
Americans are questioning all sorts of government functions these days. For example, the majority of people, according to polls, have doubts as to whether U.S. elections are free and fair. Some believe the federal justice system has been weaponized and used against those in political opposition.