Gold Price Forecast: XAU/USD corrective slide may be complete
XAU/USD Current price: $3,036.15
- The US Dollar surged amid risk aversion, extreme oversold conditions.
- The Bank of England kept the benchmark rate at 4.5%, as widely anticipated.
- XAU/USD could reach higher highs if the $3,020 area holds in the upcoming sessions.
XAU/USD short-term technical outlook
The daily chart for the XAU/USD pair shows it trades in the red, yet also that it posted a higher high and a higher low, keeping the dominant bullish trend alive. In the mentioned time frame, however, technical indicators are giving signs of upward exhaustion, losing strength at extreme levels, suggesting an upcoming corrective slide. At the same time, the bright metal holds above all bullish moving averages, with the 20 Simple Moving Average (SMA) providing dynamic support at around $2,941.70.
The 4-hour chart shows that the corrective decline may be complete as XAU/USD is bouncing from a firmly bullish 20 SMA, currently at $3,027.26, while the 100 and 200 SMAs keep heading higher, far below the shorter one. At the same time, the Momentum indicator aims lower within positive levels but loses downward strength, while the Relative Strength Index (RSI) indicator corrected overbought conditions before stabilizing at around 61.
Support levels: 3,027.20 3,011.00 2,996.90
Resistance levels: 3,056.30 3,070.00 3,085.00
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