FX.co ★ Death-X-PK | XAU/USD, GOLD

XAUUSD M-30 Time Frame Update Technically speaking, the daily chart's larger uptrend is still present. Despite the steep and erratic retreat from last week's peak, the price is staying above the 20-day Simple Moving Average (SMA), which also represents the middle Bollinger Band, at about $4,800, maintaining a positive short-term trend structure. The Average True Range (ATR) has increased to about 212, and Bollinger Bands are getting wider, both of which indicate increased volatility. Additionally, momentum indicators have begun to rebound. Rebounding from the sub-50 level, the Relative Strength Index (RSI) is currently trading close to 55, suggesting strengthening bullish momentum. Although the Average Directional Index (ADX) is starting to roll over from recent highs, indicating that the trend is weakening rather than picking up speed, the trend is still robust. The psychological level of $5,000 serves as the first obstacle on the upswing, while the upper Bollinger Band is located close to $5,350. A break below the middle Bollinger Band on the downside would reveal early support around $4,500, which would be followed by Monday's low at $4,402. Around $4,250, the lower Bollinger Band has a deeper cushion. After rising more than 5% earlier in the day, gold (XAU/USD) consolidates its gains throughout the American session on Tuesday as dip buyers reenter the market after last week's sharp drop from record highs close to $5,600. After falling to near four-week lows around $4,402 on Monday, XAU/USD is currently resting around $4,925. Rather than a noticeable decline in fundamentals, position unwinding and margin-related liquidation were the main causes of the steep sell-off, which was primarily technical in character. While Tuesday's comeback shows continued high volatility in the precious-metals market, with silver up almost 10% on the day, the overall environment for bullion is still favorable. However, in the absence of new triggers, gold may continue its short-term consolidation, and modest indications of a reduction in US-Iranian tensions may reduce demand for safe havens. However, the potential in XAU/USD might be limited by the US dollar's (USD) recent gain.