Gold prices have been consolidating below the $2,530 resistance level against the US Dollar. Despite staying above the $2,480 zone, the price has struggled to initiate a significant increase. The 4-hour chart of XAU/USD reveals a stable price movement above the 100 Simple Moving Average (red, 4 hours) and the 200 Simple Moving Average (green, 4 hours). While there was a recent upward movement pushing the price above $2,500, bears have remained active below the $2,520 and $2,530 resistance levels. A key contracting triangle is also forming, with support at $2,495. The main support now lies around $2,480, and a break below this level could lead to further downside momentum.
In case of a downside break, gold prices could test the $2,465 level and the 200 Simple Moving Average (green, 4 hours). Further losses might drive the price towards $2,420. On the flip side, immediate resistance is at $2,520, with a major hurdle at $2,530. A clear move beyond $2,530 could pave the way for more upside potential, with the next significant resistance at $2,550. Breaking above this level could rally the price towards $2,565 and potentially reach $2,580.
Meanwhile, oil prices have been facing downward pressure, with a possibility of extending losses below the $68.50 level in the near term. The market is closely watching for any signs of weakness or strength in the oil sector, as geopolitical events and supply-demand dynamics continue to influence price movements.
Additionally, the US Consumer Price Index is expected to show a 2.6% increase in August 2024 compared to the previous year, down from 2.9%. This data can have an impact on both gold and oil prices, as inflation figures often play a critical role in shaping market sentiment and investment decisions.
The current trends in gold and oil prices suggest a cautious outlook, with both assets facing key resistance levels and potential downside risks. Traders and investors need to closely monitor price movements, technical indicators, and macroeconomic data to make informed decisions in this dynamic market environment.