Price of Gold Maintains Gain, Bank of Canada Interest Rate Next

Key Take-Aways

The $1,810 area marked the beginning of a downward correction in gold pricing.

On the 4-hours chart, a significant bullish trend line is developing with support close to $1,758.

The price of crude oil started to trend downward and dropped below $78.

Today is the scheduled date for the BoC interest rate decision (forecast: 4.25%, up from 3.75% before).

Price Technical Analysis of Gold

In relation to the US dollar, gold’s price built a base above $1,725 per ounce. Over the $1,750 and $1,770 levels, the price started to rise steadily.

The XAU/USD 4-hours chart shows that the price increased above the $1,780 resistance region. Even higher than the $1,800 mark, the price settled far above both the 100 and 200 simple moving averages (red, 4-hour) of the price.

The cost reached a peak of $1,809. A recent downward reversal occurred below the $1,800 mark. Price fell below the 23.6% Fibonacci retracement of the upward movement from the $1,721 swing low to the $1,809 high.

On the downside, a preliminary support is located close to the $1,755 mark. On the same chart, a significant bullish trend line is also developing, with support located close to $1,758.

The $1,730 mark serves as the next significant support. Under $1,720, the gold price may find it difficult to maintain its position above the $1,700 level. On the upside, buyers may come into play close to the $1,790 mark.

Near the $1,800 mark, there is the next significant barrier. If the price rises further, it might head for the $1,810 resistance level, after which it might return to the $1,832 resistance.

Looking at the price of crude oil, there was a significant drop under the $80 and $78 support levels. Near the $72 mark, there is the next significant support.

Economic Announcement to Trade Today

  • Decision on Interest Rates by the B: Forecast 4.25%, up from 3.75% previously.
  • Forecast for the third quarter of 2022 for the Euro Zone’s GDP is 0.2%, up from the previous quarter’s 0.2%.
Amogo Solomon is a Broker-Dealer/Market Research analyst and writer in ACT Brokers with a background in Computer Science, Data Analytics, and Forex Broker Dealing. He specializes in Forex Dealing, markets Analysis, Currency research, forex fundamental and technical analysis, and Monitoring of Forex trends, Stocks, Equities, Cryptos, and Commodities. He possesses strong technical and analytical skills and is well known for his entertaining and informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Computer Science and Nanodegree in Programming for Data Science Enterprise.