- Gold holds above the range support at 1,975 cementing Monday’s bullish case towards 1,980.
- Short term analysis hints to a bullish scenario upon opening the session on Monday.
Gold consistently corrected higher in July to the extent of closing on the all-time highs. However, the rally has also had its fair share of losses and downtrends including Thursday’s freefall to 1,940. Following the support, recovery ensued pushing XAU/USD to highs of 1,984. A minor retreat took place towards the end of the trading session on Friday with higher support embraced at 1,960.
XAU/USD closed the week’s trading at 1,976.08 after making it above the resistance turned support at 1,975. As the market stands, the bullish scenario to the range limit at 1,980 seems intact. Various technical levels such as the RSI and the MACD are likely to continue sending positive signals.
The RSI, for instance, is holding at 63.33 amid action towards the overbought. In other words, the price is mainly in the positive region. The same uptrend is reinforced by the MACD as it comfortably sits above the MACD.
In addition, the MACD is featuring a bullish divergence that is likely to aid in kick-starting the precious metal’s bullish case to 1,980 on Monday. On the downside, support envisioned at 1,975, the 50 SMA in the 1-hour range, the 100 SMA at 1,969.13, 1,960 and 1,940 in that order.
XAU/USD 1-hour chart