Key Highlights
- Gold price started a downside correction from the $1,810 zone.
- A major bullish trend line is forming with support near $1,758 on the 4-hours chart.
- Crude oil price gained bearish momentum and declined below $78.
- The BoC interest rate decision is scheduled today (forecast 4.25%, versus 3.75% previous).
Gold Price Technical Analysis
Gold price formed a base above the $1,725 level against the US Dollar. The price started a steady increase above the $1,750 and $1,770 levels.
The 4-hours chart of XAU/USD indicates that the price gained pace above the $1,780 resistance zone. The price even moved above the $1,800 level and settled well above the 100 simple moving average (red, 4-hours) plus the 200 simple moving average (green, 4-hours).
The price traded as high as $1,809. Recently, there was a downside correction below the $1,800 level. The price traded below the 23.6% Fib retracement level of the upward move from the $1,721 swing low to $1,809 high.
On the downside, an initial support is near the $1,755 level. There is also a major bullish trend line forming with support near $1,758 on the same chart.
The next major support is near the $1,730 level. The main support is near $1,720, below which gold price might struggle to stay above the $1,700 zone. On the upside, the price might face sellers near the $1,790 level.
The next major resistance is near the $1,800 level. Any more gains might send the price towards the $1,810 resistance level, above which gold price might revisit the $1,832 resistance.
Looking at crude oil price, there was a sharp decline below the $80 and $78 support levels. The next major support sits near the $72 level.
Economic Releases to Watch Today
- Euro Zone Gross Domestic Product for Q3 2022 (QoQ) – Forecast 0.2%, versus 0.2% previous.
- Euro Zone Gross Domestic Product for Q3 2022 (YoY) – Forecast 2.1%, versus 2.1% previous.
- BoC Interest Rate Decision – Forecast 4.25%, versus 3.75% previous.