Gold continues its upward movement within a strong upward trend supported by positive momentum, bolstered by the weakness of the US dollar after lackluster economic data over the past week. The charts show technical indicators of a potential temporary correction after reaching strong resistance levels.
Technical Outlook for Gold
- The price is moving within a clear ascending channel.
- Previous resistance levels have been broken and have now turned into potential support.
- The price is currently correcting from the high of approximately 3485, which represents significant technical resistance.
Technical Indicator Analysis
MACD remains in positive territory, but shows a negative slope, indicating a potential temporary pullback or correction.
Stochastic: It has entered the overbought zone (above 80) and has begun to decline, enhancing the possibility of short-term profit-taking.
Moving Averages: All moving averages (20, 50, and 100) support the upward trend, with clear divergence between them, reflecting the strength of the momentum.
Important Technical Levels
Current Support:
- 3463.35 – First Pivot Support (Reversed from Resistance).
- 3453.75 – Medium-term Support.
- 3443.49 – Strong Support and Convergence Zone with the 50-Day Moving Average.
- 3430.00 – Potential Support and Previous Trading Floor.
Nearby Resistance:
- 3479.47 – Minor Resistance.
- 3485.67 – Today’s High and Highest Level Since the Beginning of the Week.
Possible Scenarios
Bullish Scenario (If it holds above 3463):
- A retest of 3479.47
- A breakout towards 3485.67
- Targeting the 3500-3512 levels as strong psychological resistance later
Bearish Scenario (If it breaks 3463):
- A decline to 3453.75
- Then 3443.49
- If it breaks, we may see 3430.00 as a strong retracement area
- A break of 3430 opens the way for testing 3415 and 3400
Trading strategies based on Buy/Sell levels
| In case of buying | in case of selling | XAU/USD |
| 3473.00 | 3463.00 | Entry point |
| First resistance: 3485.00 | First support: 3454.00 | Target Point 1 (TP1) |
| Second resistance 3495.00 | Second support 3444.00 | Target Point 2 (TP2) |
| 3463.00 | 3056.00 | Stop Loss (SL) |
Gold is still moving in a clear uptrend on the short-term time frame, but indicators point to a possible temporary correction before a new attempt to break above the highs. Holding above 3463 maintains the upward momentum, while a break below it could open the door to a broader corrective decline. We recommend monitoring the upcoming US economic data this week, which will have a direct impact on the direction of the dollar and, consequently, gold.
Impactful Economic Data This Week:
- Tuesday, April 23: US Consumer Confidence Index (important for determining spending behavior).
- Thursday, April 25: Unemployment Claims.
- Friday, April 26: Personal Consumption Expenditures (PCE) data – the Fed’s preferred indicator for determining inflation.
