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Gold Technical Analysis – October-12-2023

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In this article, we guide you meticulously through the intricacies of the gold market analysis, providing you with a thorough understanding of the prevailing market conditions.

Gold Technical Analysis

FxNews – Currently, gold is trading near a pivotal resistance level at $1,884. The Relative Strength Index (RSI) indicator is crossing above the 50 line, indicating a strong bullish sentiment. However, gold is trading close to this strong key resistance level ($1,884). To gain a deeper understanding of the price action, we need to delve into the 4-hour chart for a more detailed technical analysis of gold.

Gold Market Analysis

Gold Market Analysis – Daily Chart

Gold Market Analysis

Gold Market Analysis – 4H Chart

In the 4-hour chart, the yellow metal has moved above the Ichimoku cloud, and the RSI is hovering in the overbought area. This is a crucial stage for XAUUSD bulls. If they can close above the $1,884 resistance level, the next target will be the descending trendline in the daily chart. Therefore, it’s recommended to monitor candlestick patterns around this level in the 4-hour chart. A long-wick candlestick pattern or a doji in the 4-hour chart could suggest that the uptick movement is likely over and that the XAUUSD price is ready to decline and follow the main trend which started in mid-May.

Gold Market Analysis

Gold Market Analysis

When we zoom into the 1-hour chart, we see that gold is trading above the Ichimoku cloud and within a bullish channel. Another signal for entering short in gold is to wait for bears to decline the price and break below this channel. If gold’s price falls below the cloud, we can assume that the bearish trend will continue.

Summary

In conclusion, the $1,884 resistance level plays a pivotal role here. If bulls manage to close above it, we can expect gold’s price to rise to the next resistance level. On the other hand, if bears manage to keep gold’s price below $1,884, we could see a continuation of the decline from the main bearish trend.

  • 12 October 2023
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