Gold Technical: Holding above 50-day moving average

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<li><strong>Medium-term uptrend of Gold (XAU/USD) remains intact.</strong></li>
<li><strong>Its recent slide of -1.7% from the 20 July 2023 high of US$1,987.53</strong> <strong>has pull-backed close to its 50-day moving average.</strong></li>
<li><strong>Short-term elements suggest a potential bullish reversal for Gold (XAU/USD) with key support at US$1,939.</strong></li>
</ul>
<p>This is a follow-up analysis of our prior report,<em> “Resilient gold is supported by geopolitical risk” </em>published on 11 July 2023. Click<a href="https://marketpulse.com/commodities/resilient-gold-is-supported-by-geopolitical-risk/kwong"> here</a> for a recap.</p>
<p><a href="https://www.oanda.com/sg-en/trading/instruments/xau-usd/">Gold (XAU/USD)</a> has staged the bullish breakout above US$1,940 and rallied to an intraday high of US$1,987.53 on 20 July 2023, just a whisker away from the US$1,990 resistance (former congestion support zone from 10 April 2023 to 16 May 2023).</p>
<h2><strong>The medium-term uptrend remains intact</strong></h2>
<p><a href="https://www.marketpulse.com/wp-content/uploads/2023/07/XAUUSD_2023-07-25_17-35-39.png"><img loading="lazy" class="alignnone wp-image-806592 size-large" src="https://www.marketpulse.com/wp-content/uploads/2023/07/XAUUSD_2023-07-25_17-35-39-1024×559.png" alt="" width="700" height="382" srcset="https://www.marketpulse.com/wp-content/uploads/2023/07/XAUUSD_2023-07-25_17-35-39-1024×559.png 1024w, https://www.marketpulse.com/wp-content/uploads/2023/07/XAUUSD_2023-07-25_17-35-39-300×164.png 300w, https://www.marketpulse.com/wp-content/uploads/2023/07/XAUUSD_2023-07-25_17-35-39-768×419.png 768w, https://www.marketpulse.com/wp-content/uploads/2023/07/XAUUSD_2023-07-25_17-35-39-625×342.png 625w, https://www.marketpulse.com/wp-content/uploads/2023/07/XAUUSD_2023-07-25_17-35-39.png 1503w" sizes="(max-width: 700px) 100vw, 700px" /></a></p>
<p>Fig 1: Gold (XAU/USD) medium-term trend of 25 Jul 2023 (Source: TradingView, click to enlarge chart)</p>
<p>Despite the recent slide of -1.7% from the 20 July 2023 high to print an intraday low of US$1,953.28, the medium-term uptrend phase of Gold (XAU/USD) in place since the 3 November 2022 low of US$1,616 remains intact as it price actions held right above the 50-day moving average at this time of the writing.</p>
<h2><strong>Short-term downside momentum has waned</strong></h2>
<p><a href="https://www.marketpulse.com/wp-content/uploads/2023/07/XAUUSD_2023-07-25_17-45-51.png"><img loading="lazy" class="alignnone wp-image-806593 size-large" src="https://www.marketpulse.com/wp-content/uploads/2023/07/XAUUSD_2023-07-25_17-45-51-1024×598.png" alt="" width="700" height="409" srcset="https://www.marketpulse.com/wp-content/uploads/2023/07/XAUUSD_2023-07-25_17-45-51-1024×598.png 1024w, https://www.marketpulse.com/wp-content/uploads/2023/07/XAUUSD_2023-07-25_17-45-51-300×175.png 300w, https://www.marketpulse.com/wp-content/uploads/2023/07/XAUUSD_2023-07-25_17-45-51-768×448.png 768w, https://www.marketpulse.com/wp-content/uploads/2023/07/XAUUSD_2023-07-25_17-45-51.png 1503w" sizes="(max-width: 700px) 100vw, 700px" /></a></p>
<p>Fig 2: Gold (XAU/USD) minor short-term uptrend of 25 Jul 2023 (Source: TradingView, click to enlarge chart)</p>
<p>As seen on the 1-hour chart of Gold (XAU/USD), its recent slide from its 20 July 2023 high of US$ US$1,987.53 has reached the lower boundary of a minor ascending channel from 6 July 2023 low now acting as near-term support at US$1,952.50.</p>
<p>In addition, the hourly RSI oscillator has flashed a bullish divergence signal at its oversold region. These observations suggest that the downside momentum of the 5-day slide from the 20 July 2023 high has started to wane where a potential short-term bullish reversal may take shape.</p>
<p>Watch the US$1,939 key short-term pivotal support (also close to the 50-day moving average) with the intermediate resistance at US$1,990, and clearance above it sees US$2,010 next (the upper boundary of the minor ascending channel).</p>
<p>However, a break below US$1,939 invalidates the bullish reversal scenario to expose the medium-term support zone of US$1,913/1,896.</p>