Gold Technical: Bounced higher from key short-term support

  • Gold (XAU/USD) is holding above 2,000 key support ahead of US CPI.
  • Short-term uptrend phase from the 19 April 2023 low remains intact.
  • Next intermediate resistance at 2,075; its current all-time high.

In our previous article “Gold has not lost its glitter”, we have highlighted the key macro factors that may have a significant influence in driving the fundamentals and price actions behaviour of Gold (XAU/USD), click here for a recap.

Right now, let’s decipher its latest developments through the lens of technical analysis as the release of the important US CPI inflation data for April looms later today.

Fig 1:  Gold (XAU/USD) trend as of 10 May 2023 (Source: TradingView, click to enlarge chart)

The technical picture for Gold (XAU/USD) is still skewed towards a short-term uptrend phase in place since the 19 April 2023 low of 1,969.

Recent price actions of XAU/USD have formed a daily “higher low” on 5 May 2023 after a retest on the median line of a major ascending channel in place since 3 November 2022 and an upward-sloping 20-day moving average now acting as a support at around 2,000.

In addition, the hourly RSI oscillator is still hovering above the corresponding support at the 43% level and has not hit its overbought zone (above 70%) during its prior up move from 5 May to 10 May 2023.

These observations suggest that the short-term bulls may be still in control above the 2,000 key short-term pivotal support with the next intermediate resistance to watch at 2,075 (current all-time high printed on 7 August 2020).

On the other hand, a break with an hourly close below 2,000 negates the bullish tone to expose the next support zone at 1,970/1,955 that also confluences closely with the upward-sloping 50-day moving average.

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Kelvin Wong

Kelvin Wong

Senior Market Analyst, OANDA at OANDA
Based in Singapore, Kelvin Wong is a well-established senior global macro strategist with over 15 years of experience trading and providing market research on foreign exchange, stock markets, and commodities.

Passionate about connecting the dots in the financial markets and sharing perspectives around trading and investment, Kelvin Wong is an expert in using a unique combination of fundamental and technical analyses, specializing in Elliott Wave and fund flow positioning, to pinpoint key reversal levels in the financial markets.

In addition, over the last ten years, Kelvin has conducted numerous market outlook and trading-related seminars, as well as technical analysis training courses, for thousands of retail traders.