- XAU / USD is trading above the 200-day SMA on Tuesday.
- The USD’s broad weakness is helping XAU / USD move higher.
- Buyers could maintain control of gold if it manages to close above $ 1,800.
The XAU / USD pair fell to its lowest since early July at $ 1,764 on Monday, but saw a decisive recovery on Tuesday. At the time of writing, Gold was trading at $ 1,813, gaining 2.05% on a daily basis. In the absence of important fundamentals, the USD’s market valuation appears to be influencing the pair’s movements. Right now, the US Dollar Index is down 0.23% one day at 91.65, reflecting broad selling pressure surrounding the greenback.
XAU / USD technical outlook
With Tuesday’s rise, XAU / USD rallied above the key 200-day SMA, which is currently close to the USD 1,800 psychological level. A daily close above this level could attract more buyers. However, the Relative Strength Index (RSI) indicator on the same chart is still below 50, suggesting that this move could be the correction of the 6% drop seen over the past 10 days.
On the upside, the static resistance is at USD 1,815, higher than USD 1,840 (November 24th) and USD 1,850 (Fibonacci 61.8% retracement from June-August rally). Supports, on the other hand, are at $ 1,800 (psychological level / 200-day SMA) and $ 1,765 (Nov. 30 low).
Gold Daily Chart