Gold has recaptured the $1,700 mark after trading below that level for several days. The market mood is mixed after a down day on Tuesday, with stocks recovering after falling alongside oil prices. The precious metal has risen amid the coronavirus crisis, but it is far from being a one-way street.
On its way up, XAU/USD has achieved three technical feats on the four-hour chart.
The first is that momentum turned positive for the first time in nearly a week. The second is that gold popped past the previous daily weekly high set on Monday, setting a higher high. And finally, the precious metal surpassed the 50 Simple Moving Average, completing the trio of the 50, 100, and 200 SMAs.
The fresh high of $1,706 is immediate resistance. It is followed by $1,726, which held the pair down when it traded on higher ground. Finally, the seven-year peak of $1,742 awaits XAU/USD.
Support is at $1,680, which provided support last week, followed by $1,640, a support line from early April, and finally, $1,620, which is where the 200 SMA hits the price.
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