Gold Regains Strength: Poised for Continued Gains?

Key Highlights

• Gold is gaining bullish momentum above the $2,400 support zone.
• A key bullish trend line is forming with support at $2,395 on the 4-hour chart.
• EUR/USD could continue to rise toward the 1.1000 resistance.
• Bitcoin recovered and broke the $64,000 resistance zone.

Gold Price Technical Analysis

Gold prices remained well-supported above the $2,350 zone against the US Dollar. The bulls were able to push the price above the $2,380 and $2,400 resistance levels.

The 4-hour chart of XAU/USD indicates that the price even cleared the $2,420 level and settled well above the 100 Simple Moving Average (red, 4 hours) and the 200 Simple Moving Average (green, 4 hours).

The current price action suggests that the bulls could aim for a move toward the $2,440 level. The next major resistance sits near the $2,450 level.

A clear move above the $2,440 resistance could open the doors for more upsides. The next major resistance could be near $2,450, above which the price could accelerate higher toward the $2,465 level. Any more gains might send Gold toward the $2,500 resistance.

On the downside, there is a key support forming near the $2,400 level. There is also a major bullish trend line forming with support at $2,395 on the same chart.

A downside break below the $2,395 support might call for more downsides. The next major support is near the $2,380 level. Any more losses might send gold prices toward $2,365.

Looking at Bitcoin, the bulls took control, and they were able to push the price above the $64,000 resistance zone. The next major hurdle is at $65,000.

Economic Releases to Watch Today

• Eurozone ZEW Business Economic Sentiment Index for July 2024 – Forecast 48.1, versus 51.3 previous.
• US Retail Sales for June 2024 (MoM) – Forecast 0%, versus +0.1% previous.