Gold Support and Resistance - XAU/USD Analysis Today

Gold experienced another wave of sell-off yesterday, resulting in a break of support around $4,030 per ounce and a test of $3,960 per ounce. Pressure on prices remains, increasing the risk of a break of support and a decline toward $3,920-$3,900. A break of resistance around the psychological level of $4,000 will increase the chances of a test and break of $4,020 per ounce. In this case, we should expect growth toward $4,030 and $4,060 per ounce. The outlook for gold remains negative.

Gold, remaining under selling pressure, broke support near $4,100 per ounce and tested support near $4,050. $4,100 now acts as resistance, below which the risk of a decline toward $4,020-$4,000 per ounce prevails. A break of this resistance will lead to a rise toward $4,120-$4,140, ​​where selling is possible again. Only a break of the latter level can weaken the bearish grip; until then, gold's outlook remains negative.

Gold's latest pullback, in this case to resistance around $4210-$4220 per ounce, has been used for selling, pushing the pair down to $4110. A break of support at $4130 suggests a further decline toward $4080-$4050, but this decline could lead to bullish activity. Breaking resistance at $4140 will lead to a rise toward $4170-$4180, where selling is possible.

Amidst another wave of selling, gold tested support near the $4,125-per-ounce level on Friday. Following a brief period of consolidation within a relatively wide range—bounded by support at 4,140 and resistance at 4,180—bulls managed to break through resistance and test the 4,220 mark. Gold is now attracting buying interest on pullbacks, which could lead to a break above current resistance and a rise toward the 4,240–4,260 range. A loss of support at 4,180 would trigger a decline toward the 4,130–4,140 level. While range-bound consolidation is possible in the short term, central bank buying will provide support for the metal in the long term.