Looking at the XAUUSD 2-hour chart you provided, we can see that the price is currently trading around $2,658 after a slight retracement from the resistance zone around $2,685. The chart shows that gold is still facing pressure from the resistance zone marked by the orange rectangle at the top, which has been tested several times but has not yet been decisively broken.
Technical Analysis: Resistance Zone: The resistance zone near $2,685 seems to be acting as a strong barrier, with prices reacting negatively whenever they come close to it. If this resistance holds, we could expect a further pullback.
Support Zone: The blue support area around $2,620 is clearly a critical zone. Any price movements down to this area may offer strong buying interest. A bounce from this level could signal a continuation of the upward trend.
EMA Levels: The price is still above both the 34 EMA ($2,653) and 89 EMA ($2,641), indicating that the overall trend remains bullish, although short-term corrections are expected.
RSI Divergence: On the RSI, we see multiple bearish divergence signals, which suggest that the upward momentum is weakening. This might indicate a potential retracement in the short term before a stronger move upwards.
News Influence: The hot geopolitical tensions and economic data are fueling uncertainty, which often benefits gold as a safe-haven asset. Recent developments, such as uncertainty around global inflationary pressures and the Federal Reserve’s cautious approach to interest rate hikes, continue to support gold prices. Investors are still considering gold as a hedge against these factors, further strengthening the bullish outlook.
In summary, we are in a phase where a potential retracement toward $2,620 may happen before we see another push toward breaking the $2,685 resistance level. If this break occurs, we could see gold targeting $2,700 and even higher toward the $2,750 psychological level.
What do you think? Will the support hold, or do you see further downside potential before the next move up? Let's discuss!
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