- Gold is consolidating near three-week highs.
- The 1480/85 price zone is a critical resistance zone to watch.
Gold daily chart
Gold kicked off December with a bullish reversal to the 1480 resistance. Just above the level the 50 and 100-day simple moving averages (SMAs) are also acting as dynamic resistances.
Gold four-hour chart
The metal is correcting the Tuesday’s gains above the 1472 support near the 200 SMA. Buyers will need to overcome the 1480/85 resistance zone. If the breakout succeeds, then 1492 and 1515 can come into play. However, since XAU/USD has been on the back foot in the last weeks, it remains to be seen if bulls will commit above the resistance zone.
On the flip side, the bears would likely take control on a break below 1472. The breakdown could lead to a drop to 1465 and possibly to the 1455/50 zone on the way down.
Additional key levels