Considering the current situation and the weakening of the dollar against the background of the remaining high inflation, yesterday the gold quotes updated a 6-week high near the mark of 1807.00 dollars per ounce.
One way or another, inflation in the world and the United States remains high, which makes investors resort to buying this popular defensive asset.
At the same time, it should be noted that gold quotes are again in the area of the key level of 1800.00, and some representatives of the Fed said yesterday that it is still too early to declare a “victory over inflation.”
In case of further growth, the pair will move towards the key resistance level of 1826.00, the breakdown of which will again bring XAU/USD into the zone of a long-term bull market (for more details, see “XAU/USD: technical analysis and trading recommendations for 08/11/2022“).
In an alternative scenario, and after the breakdown of the important support level of 1771.00, XAU/USD will head deeper into the descending channel on the daily chart, towards its lower border and the 1600.00 mark.
Support levels: 1783.00, 1777.00, 1771.00, 1747.00, 1700.00, 1690.00, 1682.00, 1670.00
Resistance levels: 1800.00, 1807.00, 1826.00, 1832.00, 1875.00
Image and article originally from www.mql5.com. Read the original article here.