Gold price stayed relatively calm below $1,700 on Monday but rose decisively after piercing through that level on Tuesday. With US Treasury bond yields falling sharply on Thursday and putting pressure on the US Dollar, XAUUSD extended its rally and reached its highest level since August above $1,760. In the absence of high-impact macroeconomic data releases next week, the risk perception is likely to continue to impact the US Dollar's valuation and Gold price's action.

The Relative Strength Index (RSI) indicator on the daily chart is about to rise into the overbought territory above 70 for the first time in March. Although this technical development suggests that XAUUSD could stage a technical correction, the near-term outlook remains bullish with Gold price closing well above the 100-day Simple Moving Average (SMA) and the Fibonacci 23.6% retracement of the long-term downtrend.

$1,760 aligns as interim resistance and in case this level is confirmed as support, XAUUSD could target $1,780 (Fibonacci 38.2% retracement) and $1,800 (200-day SMA, psychological level).

On the downside, $1,720 (100-day SMA, Fibonacci 23.6% retracement) aligns as significant support. Only a daily close below that level could be seen as a significant bearish development and open the door for further losses toward $1,700 (psychological level) and $1,675 (50-day SMA).

a neutral/bullish bias in the short term with the one-week average target sitting at $1,768. The one-month outlook paints a mixed picture but the one-quarter outlook stays overwhelmingly bullish with a target of $1,801.

Bears to get a temporary hold over Gold

Nov 13 2022

Stop Loss -1.31%

Holding time 12d0hr

1790.24

Entry price

1813.75

Stop loss price