Gold Price Outlook

Gold Price Outlook

Gold prices are up 1.2% since the start of the week with XAU/USD rebounding off critical uptrend support into the open – the focus is on possible exhaustion on this near-term recovery and while the broader outlook remains constructive, the risk remains for a deeper setback while below 1850. These are the updated targets and invalidation levels that matter on the XAU/USD technical charts.To get more news about WikiFX, you can visit wikifx.com official website.
Technical Outlook: XAU/USD monthly opening-range is set just below confluence resistance – breakout to offer guidance. The post-FOMC breakdown saw prices plummet through the June range-lows with gold rebounding off confluence support early in the week at 1764-69- a region defined by the 50% retracement of the 2020 advance, the 61.8% Fibonacci extension of the 2020 decline and the 61.8% retracement off the March rally. Note that this threshold also converges on trendline support and break / close below is needed to mark resumption with the immediate decline vulnerable while above.
Notes: A closer look at Gold price action shows XAU/USD trading within the confines of a descending pitchfork formation with the decline rebounding off the lower parallel into the weekly open. Initial resistance stands at the 2012 high at 1795 backed by near-term bearish invalidation at 1820. A break below this key threshold exposes subsequent support objectives at 1729, the April open at 1707 and the 38.2% retracement of the 2015 advance at 1682.