Gold price failed to break above $1750 area and decline below $1700 today. Gold price consolidating below $1700, can reach at 2011’s higher? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.
April 28, 2020 | AtoZ Markets – Gold is currently trading around $1695 area and trying to push lower. Moreover, the price broke below the dynamic levels on the intraday chart. As per the current scenario, XAU price may decline further before continue the bullish trend in the coming days.
Gold Price Consolidating as the Global Economy in Turmoil
Gold had slumped in Asia with some countries are revealed the losses of months-long Coronavirus lockdown dimensions. Moreover, investors are looking forward to the U.S. Federal Reserve ends its meeting on Wednesday and the European Central Bank convention on Thursday. Still, some investors are optimistic that Gold will regain the momentum on safe-haven reputation. Besides, Gold Futures down by 0.53% to $1714 by 4:28 AM GMT.
Furthermore, Standard Chartered Bank Analyst, Suki Cooper told on an interview with CNBC, “While the broader macro backdrop remains supportive for gold prices in the near term, they’re tracking real yields most closely. U.S. Treasury yields are ticking higher this morning, and that has ended up weighing down gold prices. Safe-haven buying has continued to support Gold primarily through ETF inflows and continued retail investor demand. So if we see different economies starting to reopen, we might see some of that safe-haven demand starting to ease.”
Will XAU Find Support at the Rising Trend Line?
XAU is currently residing near $1695 area while Gold price consolidating below $1700. The price may find support at the Kumo cloud on the intraday chart and may recover higher in the coming days. Eth
Image: Gold 4 Hour Chart
According to the 4-hour chart, XAU is currently residing near $1695 area and trying to bounce from the uptrend line. As per the current price action, if the price can have a 4-hour bullish close above $1700, the bulls may push the price higher towards $1750 area in the process. Alternatively, if the price breaks below the uptrend line with an impulsive bearish close, the bearish pressure may sustain further towards $1650 area.
Furthermore, the dynamic level of 20 EMA is currently residing above the price, along with the Kijun line and Tenkan line. The dynamic levels may work as strong resistance to push the price down. In contrast, if the price breaks above the dynamic levels, the bulls may regain momentum and climb higher. Besides, the Stochastic Oscillator lines are residing near the oversold level 20. So, if the lines cross each other upside, the bulls may gain momentum in the days ahead.
To conclude, Gold price consolidating below $1700 indicates that investors are concern about COVID-19 lockdown extends and its effects on the global economy. Moreover, XAU needs some effective fundamental boost to become a safe-haven again in the days ahead.