Gold prices continue to show decent moves. Despite the rise in the USD Index, which is gold’s denominated currency, the gold prices withheld gains. Anyhow, on the daily chart, the USD Index was struggling to make a move above the overhead 200-day SMA, compromising with the gold bulls.
However, low trading volumes have kept Gold in Tight Price Range.
Iran Nuclear Deal Updates
Today, Iran said that it had not closed the “door to negotiations” vis-a-vis nuclear agreement dispute. This issue among the members of the deal had sparked since the US stepped back from the deal in 2018. Recently, the main signatories of the pact viz. Britain, France, and Germany claimed about Iran violating the Nuclear deal.
“Tehran still remains in the deal … The European powers’ claims about Iran violating the deal are unfounded. Whether Iran will further decrease its nuclear commitments will depend on other parties and whether Iran’s interests are secured under the deal,” Mousavi told a weekly news conference in Tehran.
So, if sanctions get reimposed on Iran, then that could significantly escalate the overall global tensions. In that case, things would remain favorable for the gold bulls, allowing them to conquer fresh highs.
Bulls continue to set the powerplay, showcasing a bull flag breakout. The XAU/USD pair continues to trade in the upper region of the Bollinger Bands, keeping the uptrend intact. In the upcoming sessions, after developing sufficient momentum, the pair might nudge further higher, breaking the barriers that might come on the way.
To be more accurate, the resistances that might hinder future bullish price actions are:
Needless to say, the Parabolic SAR remains above the pair, heading southwards.
On the 4H chart, the yellow metal price appears to remain stable between $1548 and $1562 since the last week. Quite noticeably, last day, the 50-day SMA, which was above the pair nosedived the trading pair, settling below the pair. Now, with all the SMAs plowed on the lower side of the pair, the bulls must be planning for some abrupt moves in the near term.
Meantime, the major resistances on the upper side include:
Any unexpected move on the downside would immediately trigger the following support levels:
Another important thing to notice is the flattish MACD green histograms. Those histograms symbolize or hints about a breakout in the coming sessions. The MACD line and the conversion line lie well above the zero line of the MACD technical indicator, strengthening bull call hopes.