- Gold is rising for the second straight day on Friday.
- Sturdy help at $1,850 stays intact following Monday’s drop.
- A number of shifting averages reinforce resistance space close to $1,900.
Following Monday’s sharp decline, the XAU/USD pair fluctuated in a comparatively tight vary and struggled to make a decisive transfer in both route. Nevertheless, the pair broke above its consolidation channel on Friday and rose to a four-day excessive of $1,896.90.
Gold technical outlook
The Relative Energy Index (RSI) on the each day chart is at the moment testing 50, suggesting that the near-term bearish outlook is popping impartial on the again of Friday’s rebound. Nevertheless, a cluster of key shifting averages above the worth exhibits that consumers could stay reluctant to decide to an prolonged climb.
Each the 50-day and the 100-day SMAs are at the moment positioned close to $1,900 psychological degree, forming a crucial resistance in that space. Solely a each day shut above that degree may open the door for added features. $1,930 (Fibonacci 38.2% retracement of the June-August uptrend) could possibly be seen as the subsequent goal on the upside.
Helps, alternatively, are positioned at $1,874 and $1,850 (Fibonacci 50% retracement). With a break beneath $1,850, sellers may look to take management of XAU/USD.