. Gold Prices Higher: Key Technical Levels

Gold Prices Higher: Key Technical Levels

20 Jun 2024

Gold prices are on the rise due to increasing geopolitical tensions

FUNDAMENTAL OVERVIEW:

  • Investors are flocking to gold for safety amid rising geopolitical tensions.
  • Concerns heighten with Israel’s threat of “all-out war” with Lebanon and Russia allying with North Korea.
  • Meanwhile, XAU/USD rebounds, reaching a critical juncture that challenges its current bearish trend.

Gold (XAU/USD) price emerges from a quiet phase on Thursday, rising by half a percent to hover in the $2,330s. It now stands at a crucial technical juncture that could shape its trend for the remainder of the summer.

As the European session begins, the market remains calm, with Asian markets experiencing slight gains or minimal losses. However, gold prices rise due to increased demand for safety amid escalating global geopolitical tensions, as major powers make strategic moves on the global stage

Investors increasingly turn to safe-haven gold as they express concern over escalating global geopolitical events.

In the Middle East, tensions escalated between Israel and Lebanon on Wednesday following Israeli officials’ approval of plans for the Northern Command to initiate a comprehensive conflict with Hezbollah in Lebanon.

Gold has surged towards a critical resistance point where a trendline intersects with the 50-day Simple Moving Average (SMA), located near $2,340. XAU/USD finds itself at a pivotal technical juncture that may shape its future directional trend.

GOLD TECHNICAL ANALYSIS DAILY CHART:

Technical Overview:

Gold is currently trading within up channel.

Gold is positioned above all the Moving Averages (SMA).

The Relative Strength Index (RSI) is in the Buying zone, while the Stochastic oscillator suggests a Positive trend.

Immediate Resistance level: 2342.44

Immediate support level: 2322.73

HOW TO TRADE GOLD

After a significant rise, gold encountered resistance and subsequently declined, entering a period of consolidation. Presently, gold is rebounding, demonstrating resilience around a crucial resistance level. Further upward movement could target the next significant resistance level if this level is breached.

TRADE SUGGESTION- STOP BUY – 2349.60, TAKE PROFIT AT- 2374.02, SL AT- 2336.74.