Gold catches the eye at the expense of the dollar 31/8/2023

Gold prices achieved the official target required during the previous technical report at 1945, recording its highest level of $1949 per ounce.

Technically, we find that gold prices succeeded in basing themselves on the previously breached resistance level and converted into a support level at the price of 1936, accompanied by continuing to obtain a positive stimulus from the simple moving averages that continue to support the daily upward curve of prices, in addition to the stability of the momentum indicator for 14 days above the midline.

Therefore, the possibility of resuming the rise is still valid and effective, provided the price holds above the main resistance for the current trading levels, 1945, the 50.0% Fibonacci retracement. This motivating factor increases and accelerates the strength of the upward trend, opening the way directly to visit 1951 and 1957, respectively, and the gains may extend towards 1965.

Only from below, the return of daily trading stability below 1936, with the closing of at least an hour candle below it, postpones the chances of a rise but does not cancel them, and we may witness a retest of 1927 and 1921. We generally favour the upward trend immediately unless we see any trading below 1913, the 61.80% correction.

Note: Today we are awaiting high-impact economic data issued by the American economy, “Personal Consumption Spending,” and we may witness high price fluctuation when the news is released.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 1936.00	R1: 1951.00
S2: 1927.00	R2: 1957.00
S3: 1913.00	R3:  1966.00