- Gold is looking north amid a favorable technical setup on the 4H chart.
- A test of the July high of $ 1985 is inevitable, with eyes on $ 2000.
- The weekly close above 100-SMA on the 4H chart increases the bullish odds.
Friday’s push led Gold (XAU / USD) on the verge of a lower channel breakout on the four hour chart (4H), as price rallied all major simple moving averages.
Therefore, the bullish momentum is expected to extend to the weekly Asia open on Monday, which may prompt the price to remove downside resistance from the trendline at $ 1969.
The weekly close above the simple moving average of $ 100 at $ 1961.11 also adds credit to the bullish bias as the Relative Strength Index (RSI) remains bullish, at 60.07.
The trend will be confirmed once the aforementioned barrier at $ 1969 is convincingly removed, with buyers aiming for a test of the July high at $ 1985.
Then the critical $ 2,000 barrier will be challenged en route to the August 18 high of $ 2015.65. The record $ 2,075 will be back in sight for XAU bulls.
Alternatively, the shiny metal could target the horizontal 50-SMA at $ 1944 if investors resort to profit taking.
The next critical support is lined up at $ 1940, where the 20 and 200-SMA coincide. A daily close below the latter could revive bearish momentum.