- The XAU / USD is trading above the 200-day Simple Moving Average (SMA) on Tuesday.
- The general weakness of the USD is helping the XAU / USD to rise.
- Buyers could keep control of the gold if it manages to close above $ 1,800.
The pair XAU / USD It fell to its lowest level since early July at $ 1,764 on Monday, but saw a decisive rally on Tuesday. At time of writing, gold is trading at $ 1,813, up 2.05% on the day. In the absence of significant fundamental drivers, the USD market valuation appears to be affecting the pair’s movements. At the moment, the US dollar index is down 0.23% on the day to 91.65, reflecting the broad selling pressure surrounding the dollar.
Technical perspective
With Tuesday’s rally, the XAU / USD rallied above the key 200-day SMA, which is currently near the psychological level of $ 1,800. A daily close above this level could attract more buyers. However, the Relative Strength Index (RSI) indicator on the same chart is still below 50, suggesting that this move could be the correction from the 6% drop seen in the last 10 days.
On the upside, a static resistance stands at $ 1,815 before $ 1,840 (Nov 24 high) and $ 1,850 (61.8% Fibonacci retracement of the June-August rally). Supports, on the other hand, are at $ 1,800 (psychological level / 200-day SMA) and $ 1,765 (November 30 low).
Daily chart
Technical levels
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