Partner Center Find a Broker

Don’t look now, but gold is sitting on a confluence of strong support levels on its 4-hour time frame.

Will bulls charge soon? Check out all these inflection points!

Gold (XAU/USD): 4-hour

Gold (XAU/USD): 4-hour Chart

Gold (XAU/USD): 4-hour Chart

Gold is looking extra shiny these days, as price is looking prime for a bounce off these inflection points.

The commodity has been trending higher, forming higher lows above a rising trend line that’s been holding since last month. This happens to be right smack in line with the 61.8% Fibonacci retracement level around $1,950/ounce.

To top it off, this level also coincides with a former resistance zone and the 100 SMA dynamic inflection point. This faster-moving SMA is above the 200 SMA to confirm that the climb is more likely to carry on than to reverse.

And did I mention that the gap between the moving averages is widening to reflect strengthening bullish vibes?

Stochastic is pointing down for now, suggesting the presence of selling pressure, but the oscillator is dipping close to the oversold region. This means that sellers are starting to feel exhausted and might let buyers take over soon!

If that happens, gold could resume the climb to the swing high or at least until the next area of interest at $2,000/ounce.

Of course this might depend on how risk sentiment fares this week, and we’ve got a bunch of potential catalysts to look out for.

One of these is the highly-anticipated FOMC decision, during which U.S. central bankers could finally deliver a 0.25% rate hike. ICYMI, here’s a trading guide for this big event!

Don’t forget that market sentiment is still sensitive to headlines on the Russia-Ukraine war, as the attacks and sanctions have spillover effects to the rest of the world.

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.