Technical Analysis: Gold price bulls need to wait for a breakout through the 50-day SMA support-turned-resistance

From a technical perspective, bulls need to wait for a sustained strength beyond the 50-day Simple Moving Average (SMA) support breakpoint-turned-resistance, currently pegged near the $2,344-2,345 region, before placing fresh bets. The subsequent move up has the potential to lift the Gold price beyond the $2,360-2,362 supply zone, towards the $2,387-2,388 intermediate hurdle en route to the $2,400 mark. A sustained strength beyond the latter will negate any near-term negative outlook and allow the XAU/USD to aim back to retest the all-time peak, around the $2,450 area touched in May.

On the flip side, the $2,300 mark might continue to protect the immediate downside ahead of the $2,285 horizontal support. A convincing break below the latter should pave the way for the resumption of the recent pullback from the record high and drag the Gold price towards the next relevant support near the $2,254-2,253 region. The downward trajectory could extend further towards the $2,225-2,220 support before the commodity eventually drops to the $2,200 round-figure mark.