Price of Gold Maintains Gain, Bank of Canada Interest Rate Next
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%.
Author: Amogo Solomon
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