Gold Strengthens: Bulls Set Sights on Bigger Moves – Action Forex

Key Highlights

Gold started a fresh upward move above the $2,625 resistance.
A key bullish trend line is forming with support at $2,620 on the 4-hour chart.
Oil prices could continue to rise if there is a close above the $75.00 resistance.
The US ADP employment could change by 140K in Dec 2024.

Gold Price Technical Analysis

Gold prices remained well-bid near the $2,600 zone against the US Dollar. The price formed a base and started a fresh increase above $2,610 and $2,615.

The 4-hour chart of XAU/USD indicates that the price even climbed above $2,620 to move into a positive zone. There was a clear move above the 50% Fib retracement level of the downward move from the $2,726 swing high to the $2,582 low.

The price surpassed the 100 Simple Moving Average (red, 4 hours) and the 200 Simple Moving Average (green, 4 hours). On the upside, immediate resistance is near the $2,670 level or the 61.8% Fib retracement level of the downward move from the $2,726 swing high to the $2,582 low.

The next major resistance sits near the $2,692 level. A clear move above the $2,692 resistance could open the doors for more upsides. The next major resistance could be $2,700, above which the price could rally toward the $2,720 level.

On the downside, initial support is near the $2,635 level. The first key support is near $2,620. There is also a bullish trend line forming with support at $2,620 on the same chart.

The next major support is near the $2,600 level. The main support is now $2,580. A downside break below the $2,580 support might call for more downsides. The next major support is near the $2,550 level.

Looking at Oil, there was a decent increase, and the bulls might aim for a close above the $75.00 resistance level.

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