FX.co ★ Death-X-PK | XAU/USD, GOLD

XAUUSD M-15 Time Frame Update On Wednesday, gold rallied to a high of $5,011 before testing resistance at the 20-day average for the second time. This reflects short-term weakness until the 20-day average, now at $5,003, is regained. If crucial support levels are maintained throughout any more dip, gold might rebound even more. The low of $4,842 set on Tuesday provides near-term support. If it breaks, a deeper fall from last week's lower swing high of $5,119 is more likely. The 50-day moving average, currently at $4,673 and climbing, is a key lower support level. However, the recent interim swing low of $4,655 should be viewed in conjunction with the 50-day line. If the upper swing low is breached, the second leg up from the bottom will fail. The second leg up began at that low and reached a slightly fresh high of $5,119 from last week, while the first leg up concluded at $5,092. Note that the bounce's peak fell just shy of completing a 61.8% Fibonacci retracement of the last major fall at $5,141. Long-term gold investors should analyze the relationship to the rising trend channel. The current higher swing low of $4,402 is part of the bull trend's pattern of higher swing lows and highs. Despite a dramatic 21.4% loss from the $5,598 peak, support at the 50-day average held, resulting in a rapid reversal. Furthermore, the top of the channel added to the prominence of that support area. That top boundary was effectively challenged as support for the first time since the trend breakout in January. The confluence of the two indicators at the low emphasizes the significance of that support zone.