Gold Prices Challenge: AUD/USD Seeks Bullish Momentum

Gold prices challenge resistance, and AUD/USD seeks a bullish breakout. Technical analysis highlights critical levels.

Prices are on the ascent in gold trading, confronting significant technical resistance amidst declining U.S. yields and a weakened U.S. dollar. The AUD/USD pair is mirroring positive momentum and making strides by surpassing its 200-day simple moving average.

Examining the technical analysis for gold prices reveals that the Monday climb results from the decline in U.S. yields and the softness of the U.S. dollar. XAU/USD has surged over 8% since October, firmly surpassing its 200-day simple moving average and breaching the psychological $2,000 mark. These two technical indicators contribute to a bullish outlook for gold.

Gold Prices Challenge: AUD/USD Seeks Bullish Momentum

To solidify confidence in the bullish scenario and anticipate further upward momentum, a decisive move above the $2,010/$2,015 resistance zone is essential. This key hurdle has consistently impeded advances throughout the year. Hurting this obstacle could trigger a rally towards $2,060 and $2,085, representing May’s high.

In the event of a rejection from current levels, gold might retreat towards support around $1,980 to $1,975. A bearish reversal in this range could stabilize prices, but a breach could lead to a retreat to the 200-day simple moving average at approximately $1,950. Below this level, attention may shift to $1,937.

Turning to the technical analysis of AUD/USD, the pair moved upward at the beginning of the week, surpassing its 200-day simple moving average and approaching the 0.6600-0.6620 resistance band. The RSI indicator nearing overbought territory suggests a potential slowdown, but a breakthrough of 0.6600-0.6620 could rejuvenate bullish sentiment, propelling prices toward trendline resistance at 0.6670, with a further target at 0.6815.

Conversely, a shift in market sentiment favoring sellers could lead AUD/USD to test primary support at 0.6525. Further downside risks include breaching this threshold, with subsequent targets at the 100-day simple moving average and 0.6460. Bulls must robustly defend the 0.6525 level to avoid a pullback towards 0.6395.

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