FX.co ★ XAU/USD, GOLD

XAUUSD M-15 Time Frame Update Gold is exhibiting signs of ongoing strength, as it has been pushing up against resistance since the previous lower swing high of $5,092. Wednesday marked the third day in a limited range with a high around the zone. The days high was $5,119, which exceeded the swing high and approached a 61.8% Fibonacci retracement of the recent major downswing at $5,141. That represents the resistance zones highest point. Nonetheless, the nature of the counter-trend rally suggests that higher prices will be tested. Following last weeks low of $4,402, gold formed a first leg up in a rebound to the lower swing high of $5,092. This resulted in a decline to a 61.8% Fibonacci retracement and a lower swing high of $4,655. The second leg up started at that low and was confirmed today with a move over the lower swing high. With a daily close above the Fibonacci level at $5,141, a bullish continuation signal will be confirmed. A full retracement of the negative downturn from the record high points to an upward objective near the 78.6% Fibonacci retracement at $5,342. That aim is reinforced by a rising measured move, as illustrated by the charts rising ABCD pattern. A 100% projection of the first leg up achieves the same goal. That is where the advance matchs CD and AB legs are located. Resistance may be observed when the two legs are symmetrical. Regardless of the possibility for more highs, a bullish continuation signal must first trigger above $5,141 and then be confirmed by a daily close above that level. If a retreat comes first, gold may drop to test support near the 20-day average, which is now $4,936. However, this weeks low of $4,965 is inside the weekly trend structure of increasing weekly lows. Although the week has not ended, a decline below that level would be short-term negative. A pullback to lower prices could get closer to the higher swing low of $4,655 before bullish momentum leads to another attempt to get above the 61.8% Fib zone. So, if gold remains above $4,655, there is a possibility that it may reach the higher target. XAUUSD M-30 Time Frame Update Gold has failed to maintain its breakout over $5,092 and is now seeking short-term support near the 20-day average, indicating potential congestion within the broader uptrend. Gold fell to a four-day low of $4,879 on Thursday, struggling to hold support near the 20-day average. Following a three-day attempt to break above a lower swing high of $5,092, silver succumbed to negative pressure, with sellers gaining control. Although this weeks high of $5,119 lifted the gain slightly over the lower swing high, it was not sustained by a daily closing above the previous high. Gold is expected to close todays session at a four-day low, confirming the shift to short-term bearish. Todays low of $4,879 represents short-term support and is below the 20-day average. Gold has weakened after narrowly reaching above its $5,092 peak. This pattern indicates that a time of consolidation may ensue. The bull trends key support is at the rising 50-day average of $4,611. There is also the recent upper swing low of the bounce at $4,655, which served as an interim low. Another test of support during consolidation is predicted, which would be positive for the trend. On the upside, if todays low leads to a higher swing low after an upward breakthrough over $5,119, greater targets may be met before the advance is completed. The convergence of two targets marks the upper price zone. Both specify $5,345 as the price level of interest. The aim is anchored by the current declines 78.6% Fibonacci retracement.