Gold Price Analysis: The small blip in XAU/USD didn’t last long

• Gold started the EU session lower and now trades 0.75% higher on Tuesday.
• The level to beat for the bulls is the all-time high at USD 1981.34 per troy ounce.

Gold 30-minute chart

Gold has been on a great run of late making all-time highs and the USD continues to underperform. There was a little wobble overnight leading into the EU session where the price of the precious metal hitting an intraday low of USD 1907.04 per ounce at around 7.30 am London time. The gold bugs then noticed the sell-off and the priced marched USD 50 or so to trade where we are at the moment. 

Looking at the chart, the key feature is the Fibonacci extension and the next level on the way up lands at USD 2010.00 per ounce. Before that, there is the small matter of the 76.4% Fibonacci retracement at USD 1963.56. This is often a level that Elliott Wave analysts watch out for as it could be the wave 1-2. This is the beginning of a new sequence or the start of an ABC consolidation pattern. 

The indicators are understandably bullish once again. The Relative Strength Index is above 50 again and heading to the oversold area. The MACD histogram is still green and the signal lines are above the mid-point which is also bullish. 

Additional levels