In September 2024, XAUUSD was influenced by both fundamental and technical factors, leading to high volatility as traders adjusted to economic data, central bank policies, and geopolitical uncertainties. However, this analysis will focus on the technical side:
Price Movement
At the beginning of September, gold opened at 2,500 and dropped to 2,473. After that, it made a strong move to test its September high at 2,685 before finally closing at 2,635, resulting in a price increase of more than 5%.
Trend Outlook
Overall, gold remains in a strong bullish trend. However, the short-term trend appears to be consolidating.
It’s important to note that this consolidation could last, similar to the previous consolidation, which took about three weeks. As shown in the XAUUSD chart above, this kind of movement may provide opportunities for short-term traders, while long-term traders might find it unsettling. Therefore, it’s crucial to adjust your trading and investment strategies to prepare for upcoming gold movements.
Key Support and Resistance
Support
The nearest significant support area for gold is currently in the 2,614-2,629 range. As previously mentioned, during the potential consolidation phase, this area is crucial since it could cause gold to bounce if touched. The next levels of support are at 2,547 and 2,472.
Resistance
The current key resistance for gold is 2685, a level that has not yet been breached. If gold continues to strengthen, this level may need to be tested several times before a breakthrough occurs. So it is necessary to pay attention to price action when it approaches that level.
Moving Averages
Due to gold’s recent strong movement, the moving averages to watch are the MA20 and MA50. Gold tends to react when it touches either the MA20 or EMA50. Currently, the price is still above both moving averages. Monitoring these indicators can help gauge the strength of the current trend.
Target
With gold in a bullish condition, further upward movement is expected. The target level for October 2024 is 2,712, which aligns with the 2.618 Fibonacci extension.
Conclusion
XAUUSD saw strong upward movement in September, supported by both macroeconomic and geopolitical conditions, as well as a bullish trend. Traders and investors involved in gold-related instruments should be mindful of potential rapid price movements, which may be triggered by economic data releases or market activity.