- Gold regained traction on Friday and recovered some of the previous day’s losses.
- The technical setup supports the prospects for a move to the $ 1931-33 zone, of getting hold above $ 1910.
- Break below $ 1900 will negate the positive outlook.
Gold rose to $ 1914 in the first minutes of the American session, but failed to stabilize and is trading at $ 1905, before a recovery of the dollar in the market.
The bullish outlook is reinforced by the fact that the hourly technical charts have started to move into positive territory again. Furthermore, the oscillators on the day chart, although they have been correcting from higher levels, maintained their bullish bias. Therefore, if it came back and held above $ 1910, it would go to test the intermediate resistance at $ 1918, en route to the $ 1931-33 supply zone.
On the other hand, any significant pullback could continue to attract some buying. The $ 1900 zone should help limit weakness, along with Thursday’s low of $ 1895. That said, if the bullish bias remains below it will be negated.
The XAU / USD could become vulnerable to accelerate the slide towards the support of the 100-day SMA, around the $ 1880 region. The downward trajectory could extend further towards the intermediate horizontal support of $ 1860-59 en route to September’s monthly lows, around the $ 1850 region.
XAU / USD 4 hour chart
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Credits: Forex Street
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