Are gold prices ready to resume their long-term climb to fresh highs?
Or will the precious metal hit another roadblock on its uptrend?
Check out these nearby inflection points I’m watching on the 4-hour time frame:
Gold (XAU/USD): 4-hour
Gold (XAU/USD) 4-hour Chart by TradingView
Gold prices have been on a tear over the past couple of months, with its higher lows connected by a rising trend line that’s been holding since August.
The precious metal seems to have bounced off this support zone as risk-off flows and anti-USD action resumed this week, suggesting that bulls might be ready to charge again.
However, XAU/USD is hitting a near-term ceiling at the top of its descending channel. Will it keep gains in check from here?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on gold and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
The 100 SMA is still above the 200 SMA on this time frame, hinting that the uptrend is more likely to gain traction than to reverse. The gap between the technical indicators is even widening to suggest strengthening upside momentum.
But if resistance at the pivot point ($2,650) holds, gold could be in for another dip to its trend line support around S1 ($2,627.99) or even the short-term channel bottom.
A continuation of the climb past the channel top, on the other hand, could pave the way for a test of R1 ($2,676.47) near the latest highs or a rally to fresh record levels at R2 ($2,699.10) then R3 ($2,724.95).
Just be sure to keep an eye out for geopolitical headlines and U.S. economic updates that could impact overall market sentiment. Whichever bias you end up trading, don’t forget to practice proper risk management, too!