Gold XAU/USD Technical Analysis: How Long Will the Current Growth Last
22-09-2021
50

Based on the last overview’s forecasts, the consolidation of the price below the $1800 mark was accompanied by a subsequent decline, but the downtrend stopped above the support of the 1760 mark. Following the reversal from this mark, the price is still rising. Recently, prices have not lingered for a particularly long time below 1780-1800, and with the future entry of prices into this range, the likelihood of further growth increases.

The main factors that can support a sharp rise in gold prices during this month include a rising number of Covid-19 cases, virus mutation, drop in US labor market, escalation of US-China relations, Fed's monetary policy tightening or the lack of a solid vaccination background.

XAU/USD technical analysis as of 22.09.2021: Figure 1

On the scale of the hourly chart, we will face price consolidation in the middle of the 1800-1740 price range. Given the overall strengthening above 1760 resistance, further growth may continue to 1780-1800 levels.


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XAU/USD technical analysis as of 22.09.2021: Figure 2

On a larger scale of the 4H chart, we can assume that the price strengthening above the 1780 mark may prevent quotes from going higher. Such a scenario implies a downward price reversal following an impulsive retest of 1780. Keep in mind that the subsequent retest of 1760 may lead to price strengthening.


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