Gold price rose $2,011/oz after the beginning of the American session, reaching a fresh daily high. The yellow metal remains near the high, supported by a weaker US Dollar.

On a quiet session, recently, XAU/USD spiked down to $1,991 and then rebounded to the $2,010 area where it is trading. It is moving with a bullish intraday bias, still within Monday’s price range.

Federal Reserve expectations are little change. Markets participants continue to see a rate hike in May as the most likely scenario and one rate cut before year-end as possible. The rally in Gold lost momentum during the last days as investors pared bets for deep rate cuts.

the $1,980 area now seems to have emerged as an immediate strong support. A convincing break through the said level will negate the positive outlook and prompt some technical selling. The Gold price might then accelerate the corrective decline towards the $1,965-$1,960 intermediate support en route to the $1,950 horizontal zone. A daily close below $1,990 should keep the door open to an extension of the retreat with key support levels seen at $1,975 and $1,955.

In the daily chart, Gold found support above the 20-period Simple Moving Average (SMA). The trend is still up. Above $2,025, more gains seem likely, and while below, a consolidation between that area and the 20-SMA could take place. On a wider aspect in regards to keeping the higher degree trend on Gold in view, bulls might now wait for a move beyond the overnight swing high, around the $2,015-$2,016 area before placing fresh bets. The Gold price might then climb to the YTD peak, around the $2,047-$2,049 region touched last Thursday, before climbing further towards retesting the all-time high, around the $2,070-$2,075 region set in August 2020.

Gold to complete its dovish trend on h4 before more up

Apr 18 2023