FX.co ★ XAU/USD, GOLD

XAUUSD After falling below Monday's low to a daily low of $5,091, gold rose to a little new high for the bounce on Tuesday at $5,250. A bullish continuation from the recent swing bottom at $4,402 was reinforced on Monday by a daily finish above a three-week high of $5,119. A second bullish confirmation day is created if Tuesday closes above that level as well. Near the intersection of two moving averages is key support. Potential support is indicated by the 10-day and 20-day moving averages at $5,036 and $5,021, respectively. If gold is to have a shot at higher pricing, those moving averages should hold as support because they are practically on top of each other. Higher prices are also supported by the weekly breakout. After a weekly close above the $5,119 high, it might confirm on a weekly basis, as it did on a daily basis. The gold trend would benefit from a decline to test support prior to an attempt at a higher bounce. Additionally, it would give traders and investors the chance to go long. However, $5,345—the 78.6% Fibonacci retracement of the recent bearish slide after the record high at $5,598—is an initial upside objective for gold. Overall, gold is still in a strong long-term bull trend. During the most recent bearish correction to a higher swing low of $4,402, the 50-day average was effectively tested as support. Since it was regained in August, that was the first time the 50-day line has been touched as support. Its significance was underlined by the bullish reaction that followed that low. Additionally, the low finished the previous internal upswing's 88.6% Fibonacci retracement. Additionally, it discovered support at the top of a trend channel that, until early January, had served as resistance.