fundamental News - XAUUSD

Gold prices have surged nearly 4% off the March lows with XAU/USD threatening a major breakout in early April trade. While the immediate focus is on this recovery, the advance may be vulnerable into uptrend resistance just higher, the XAU/USD technical charts look to be heading into the April opening-range.

The yearly low-day reversal close at 1,683. Basically, the downside is littered with levels here but IF price breaks lower, expect another accelerated drop towards weekly Fibonacci 50% level at 1,630. Prices are rallying now threatening a breakout of multi-month downtrend resistance at the March open / high-day close and weekly Fibonacci 38.2% level around 1,730-35.

A newly added ascending pitchfork formation may be in play here and puts the advance at near-term uptrend resistance at the 75% parallel today. Key resistance objectives remain at the confluence with a breach / close above the daily 50-SMA 1,764.74 needed to suggest a more significant reversal is underway.

Gold is threatening a larger breakout here into the April open with price now testing initial resistance. From at trading standpoint, immediate risk is for a move higher while above the weekly open but look to reduce long-exposure / raise protective stops on a stretch towards 1764.74 be on the lookout for topside exhaustion ahead of / into this zone.