27 Aug 2024
Gold price drifts lower as traders await fresh catalysts
Technical Analysis: Gold price’s broader bullish picture remains intact
Gold price edges lower on the day. The yellow metal remains capped under a five-month-old ascending channel upper boundary. Nonetheless, a broader bullish outlook prevails as the precious metal is well-supported above the key 100-day Exponential Moving Average (EMA) on the daily chart. The 14-day Relative Strength Index (RSI) holds above the midline near 92.95, indicating sustained strength.
If Gold busts through the resistance areas and sustainably sees bullish candlesticks above the $2,530-$2,540 zone, the record high and the upper boundary of the trend channel, XAU/USD could make a play for the $2,600 psychological barrier.
On the other hand, any follow-through selling below the low of August 22 at $2,470 could draw in more technical sellers and take the Gold down to the next support zone at $2,432, the low of August 15. The key contention level to watch is the $2,360-$2,370 zone, the lower limit of the trend channel and the 100-day EMA.
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