Gold prices grapple to gather any significant upward momentum following the recent retreat from the $2,040 region, exhibiting narrow trading ranges during the Asian trading session on Wednesday. Traders appear somewhat reluctant, preferring to await the latest CPI figures set to be unveiled on Thursday before committing to new directions. XAU/USD trades around $2,030, retreating from the day's peak at $2,042.09. Technical indicators on the daily chart hint at a downside risk, with the pair hovering below the 20-day Simple Moving Average (SMA). Meanwhile, the convergence of the SMA 100 and 200 around $1,962 provides substantial long-term support. Despite a slight turn in certain technical indicators, they remain neutral, lacking the robust momentum to confirm a further southward trajectory.
However, in the short term and as per the 4-hour chart, a bearish trend seems dominant. The pair trades below all its moving averages while technical indicators display downward pressure below their midlines. The SMA 20 acts as a downward pivot amid longer SMAs, establishing a short-term resistance level around $2,036.
Support Levels: $2,016.60, $1,998.65, $1,987.20
Resistance Levels: $2,036.00, $2,052.30, $2,065.45
However, in the short term and as per the 4-hour chart, a bearish trend seems dominant. The pair trades below all its moving averages while technical indicators display downward pressure below their midlines. The SMA 20 acts as a downward pivot amid longer SMAs, establishing a short-term resistance level around $2,036.
Support Levels: $2,016.60, $1,998.65, $1,987.20
Resistance Levels: $2,036.00, $2,052.30, $2,065.45
