FX.co ★ XAU/USD, GOLD

XAUUSD Daily Time Frame Analysis Gold's price surged to a six-day high of $5,088 on Friday, concurrently regaining the 10-day and 20-day moving averages. As they were being regained, the averages were nearly identical. The gain that started from the $4,402 swing low, which was reached early in February, may continue, according to this optimistic price movement. At $5,092 (B), a lower swing high was formed following a single, significant advance from the low. That high was followed by weakness, which resulted in a greater swing low at $4,655 (C). After briefly surpassing the lower swing high to reach a high of $5,119, a second leg up started from that low but soon stopped before retreating into support at $4,842. As a result, since Thursday's rise to a three-day high, the swing low is higher. Recent swings are indicated by a rising ABCD pattern on the chart, which believes that the $4,842 swing low is contained inside the CD leg of the formation. Based on the decisiveness demonstrated in the first leg up from the bottom, this is a judgment call. The measurement indicates that $5,345 is the first upside target. At that point, the CD advance reflects the price increase observed in the AB leg. In addition to being 100% ABCD, this aim is more important. The price is in line with the bearish correction's 78.6% Fibonacci retracement. A price area becomes more significant as support or resistance when two indications point to the same price level. It is resistance in this instance. One could argue that the recent steep bearish drop of 21.4% has peaked. The intersection of the top of a long-term ascending channel and the 50-day moving average served as support. A recovery from $4,402 verified the channel's support at the previous resistance. These indicators' combined bullish response raises the possibility of additional gains by indicating that the correction may be concluded.