Search ForexCrunch
  • Gold has been trending higher after taking support near the double bottom formation on the daily chart.
  • However, XAU/USD now faces stiff resistance near the $1,775 hurdle.
  • MACD indicator tilts in favor of bulls.

Gold is consolidating below February 26  highs of $1,775.90 on Friday, as the bulls gather pace to continue the upside further.

At the time of writing, XAU/USD is trading at $1,767.25 with modest gains on the day.

XAU/USD daily chart

On the daily chart, gold has been hovering near the intraday high mark at $1,767.54 and has made an inconsistent effort thus far to pierce above the threshold placed around the horizontal resistance zone of $1,766.45. On moving higher, the gold bulls would first interact with the highs of February 6 at $1,775.90, and the next stop will occur near $1,780, a horizontal support zone.

The Moving Average Convergence Divergence (MACD) indicator is on the verge of moving above the midline. If this happens, then it would further signify gains for golds. In doing so, it would not be an exaggeration to mention that the prices could retest February 25 highs in the vicinity of $1,805.

On the flip side, a slight pullback in the prices would open the gates for the $1,740 resistance-turned-support line. Furthermore, the possibility of $1,720 and $1,700 can not be ruled out – both are daily lows of April 5 and April 1, respectively.

XAU/USD additional levels