In the early Asian trading hours on Tuesday, gold extended its upward momentum, surpassing the crucial $2,000 mark. The yellow metal reached its highest level in six months as the US dollar softened and yields on US treasury bonds remained low. The XAU/USD is currently trading near $2,015, marking a marginal 0.01% decrease for the day.
The daily chart for XAU/USD indicates another bullish move, with the third consecutive higher high and higher low. Gold is performing well on the undirected moving averages, with the 20-day Simple Moving Average (SMA) currently around $1,976. Technical indicators are pointing upwards, reaching new highs for the month, aligning with the current upward trend.
Looking ahead, on the 4-hour chart, XAU/USD appears to be in a neutral to bullish trend. Gold is above the rising SMA 20, although the longer SMAs are exhibiting uneven strength compared to the shorter SMA. However, technical indicators show directional weakness but remain positive, increasing the risk of an upcoming price surge without clear confirmation.
Support Levels: $2,018.10 - $2,034.50 - $2,051.90
Resistance Levels: $2,005.60 - $1,991.45 - $1,978.40
In the short term, the gold market faces several positive factors, yet the apparent lack of clarity in technical signals requires cautious observation. Investors should monitor the situation carefully and consider trading strategies based on the latest information. The weakening US dollar continues to be a key driver for gold's recent impressive performance, making it a focal point for traders and analysts alike.
The daily chart for XAU/USD indicates another bullish move, with the third consecutive higher high and higher low. Gold is performing well on the undirected moving averages, with the 20-day Simple Moving Average (SMA) currently around $1,976. Technical indicators are pointing upwards, reaching new highs for the month, aligning with the current upward trend.
Looking ahead, on the 4-hour chart, XAU/USD appears to be in a neutral to bullish trend. Gold is above the rising SMA 20, although the longer SMAs are exhibiting uneven strength compared to the shorter SMA. However, technical indicators show directional weakness but remain positive, increasing the risk of an upcoming price surge without clear confirmation.
Support Levels: $2,018.10 - $2,034.50 - $2,051.90
Resistance Levels: $2,005.60 - $1,991.45 - $1,978.40
In the short term, the gold market faces several positive factors, yet the apparent lack of clarity in technical signals requires cautious observation. Investors should monitor the situation carefully and consider trading strategies based on the latest information. The weakening US dollar continues to be a key driver for gold's recent impressive performance, making it a focal point for traders and analysts alike.
