FxNews – The price of gold experienced a significant surge on Friday, December 15, reaching as high as $2,048.
XAUUSD Technical Analysis – Key Technical Levels
This Gold’s peak coincides with a pivotal point in the market. The XAUUSD bulls tested this pivot, and the Relative Strength Index (RSI) entered the overbought zone. This shift was a critical signal, hinting at a potential trend reversal or the start of a consolidation phase. Consequently, the price of gold sharply retreated to its 61.8% support level, settling around the $2,014 mark.
Gold Bullish and Bearish Scenario
For gold prices to stay steady, the bulls must keep them above the 61.8% support level. If they don’t, and if the bears push the price below this critical point, we might see the prices drop even more.
The next key level to watch is the 78.6% support if prices fall. This is especially important because the price of $1,978 is closely tied to this level, marking a strong point of support thanks to the 78.6% Fibonacci retracement.
On the flip side, the pivot point has been a major hurdle, preventing the gold price from rising further. The bulls must break through this obstacle and move past the bearish flag to increase the price. This step is crucial for them to challenge the current bearish outlook.
If the bulls breakthrough, we could expect a significant uptick in the price. Their first goal would be reaching the 23.6% resistance level.