XAUUSD Found Support Within The Hourly Moving Averages

Gold markets lower during early trading session this Friday in Asia as price met resistant at the weekly 50-SMA. However, it looks as if the $1800 level is trying to offer a bit of support. By bouncing in the manner that we have, it does suggest that we may make another attempt on the trendline up above, and perhaps the $1850 level, which for me is a major resistance barrier. If we can break above there on a daily close, then it is likely that we could go looking towards the $1950 level.

To the downside, the 1-hourly 200-SMA $1,812 remains supportive for the near term, expect a bit of buying around that levels, especially as it is also where the daily 100-SMA at $1,795 level. The 4-hourly 50-SMA $1,813  is starting to reach towards that area as well, so that is yet another reason to think that perhaps support will come back into play.

It is not until we break above the $1850 level on a daily close that I would get long, so I am going to have to be very patient in this general vicinity. As far as selling is concerned, I would like to see some type of break down below the two moving averages in order to aim for the double bottom just below the $1700 level. You should also keep an eye on interest rates and how quickly they are moving, because if they speed up in a spike higher, that could work against gold as it did for a couple of months previously.