Gold Struggles To Close Above

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Gold Struggles To Close Above

Gold (Xau/Usd) Struggles To Close Above $2670

Gold (XAU/USD) traders have been trying their best to make a daily close above the important level of $2670. However, it seems that a lot of sellers are lurking around this level, making it difficult for the buyers to make a daily close.

Despite all of this, gold (XAU/USD) is still bullish, and traders are optimistic about the bullish setup on the D1 chart. Also, the market is going through a phase of risk aversion which is also helping the Gold (XAU/USD).

Gold (Xau/Usd) Finds Support At 20 Sma

On the Gold (XAU/USD) daily chart, it seems that the 20 SMA is acting as a strong support for the bulls. This SMA is located at $2638 and is helping the Gold to stay positive in the near-term.

Also, the 100 and the 200 SMA are not that far away from the 20 SMA, which is a sign that bulls dominate the price action of precious metals.

Last but not least, the momentum indicator is still above 100. Additionally, the RSI is near 62, which also hints at a higher upside for gold (XAU/USD).

In the short-term, the risk aversion helps Gold (XAU/USD) stay focused on the upside. The Gold (XAU/USD) is also developing above the 100 SMA with a mostly flat slope.

the 20 SMA is also above the 100 SMA, which is a sign of bullish crossover and shows that sufficient buying interest is still present.

However, technical indicators show that upward strength is slowly fading away as all the indicators are just barely above the midlines. After looking at all of this, it seems that more upside is highly likely as long as the support at $2640 holds in place.

For the technical traders, the support levels for the Gold (XAU/USD) are seen at $2654 and $2638. A break of these two will send the precious metal to $2625.

On the flip side, the first and second resistance levels are seen at $2673 and then $2685. Beyond these, the final resistance is at $2700.

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