Gold Technical: Bounced higher from key short-term support

In our previous article “Gold has not lost its glitter”, we have highlighted the key macro factors that may have a significant influence in driving the fundamentals and price actions behaviour of Gold (XAU/USD), click here for a recap.

Right now, let’s decipher its latest developments through the lens of technical analysis as the release of the important US CPI inflation data for April looms later today.
The technical picture for Gold (XAU/USD) is still skewed towards a short-term uptrend phase in place since the 19 April 2023 low of 1,969.

Recent price actions of XAU/USD have formed a daily “higher low” on 5 May 2023 after a retest on the median line of a major ascending channel in place since 3 November 2022 and an upward-sloping 20-day moving average now acting as a support at around 2,000.

In addition, the hourly RSI oscillator is still hovering above the corresponding support at the 43% level and has not hit its overbought zone (above 70%) during its prior up move from 5 May to 10 May 2023.

These observations suggest that the short-term bulls may be still in control above the 2,000 key short-term pivotal support with the next intermediate resistance to watch at 2,075 (current all-time high printed on 7 August 2020).

On the other hand, a break with an hourly close below 2,000 negates the bullish tone to expose the next support zone at 1,970/1,955 that also confluences closely with the upward-sloping 50-day moving average.