Article by: ETO Markets

Gold price rallied for the fourth straight day during the as traders from North America digested the latest economic news. Moreover, China lowered interest rates supported gold towards north direction alongside the drop in US Treasury bond yields.

The daily chart for the XAU/USD pair shows an increased bullish potential. The bright metal is trading above its 20-DMA for the first time in over a week. At the same time, the longer moving averages gain upward traction far below the current level, with the 100-DMA providing dynamic support at around $... The current resistance level is around $…, which is the highest on February 7th. 

In the near term, and according to the 4-hour chart, XAU/USD lost momentum but holds on to gains, limiting the risk of a steeper slide. The 20-SMA heads firmly north, far below the current level, reflecting the ongoing momentum, while the longer moving averages remain directionless. XAU/USD hovers around a flat 200-SMA.