Gold is showing a clear rebound from the lows near 4100 and is now trading around 4221-4230 within a broad ascending channel, benefiting from a weakening dollar and a moderate return of safe-haven demand.
The price managed to hold above the pivotal support zone of 4170, giving a boost to the current upward movement.
However, the move remains relatively weak below the short-term resistance at 4250. The MACD indicator is still in negative territory, but the downward momentum is starting to weaken with the first signs of a positive crossover on the shorter timeframes.
This supports the possibility of a continued recovery as long as the price remains above 4170.
General trend: Neutral with a slight upward bias within an ascending channel.
Support: 4170 – 4125 – 4085
Resistance: 4250 – 4290 – 4320
Expectation:
A break above 4250 would reinforce the upward trajectory towards 4290 and then 4320.
Conversely, a failure to break through the resistance and a return of selling pressure could push the price back towards 4170, a crucial support zone for the trend.
