Gold (XAUUSD) Remains Bullish Amidst Short-Term Pullback

Market Analysis – February 20

Gold (XAUUSD) remains bullish despite undergoing a short-term pullback. The market continues to trade above the 9-period Simple Moving Average (SMA) around $2,920, maintaining its upward trajectory. However, a minor correction could be imminent as the Relative Strength Index (RSI), currently at 68.68, approaches overbought territory. A slight decline in the RSI from recent highs indicates weakening buying pressure, increasing the likelihood of a pullback before further upward movement.

Gold Key Levels

Resistance Levels: $2,880, $2,960, $3,100
Support Levels: $2,790, $2,580, $2,470

Gold Long-Term Trend: Bullish

Recent price action shows that XAUUSD has broken above the $2,880 level and is now facing resistance at $2,960. After rebounding from a fair value gap (FVG) around $2,880, the price has moved significantly higher, reinforcing the bullish trend. A pullback into this FVG or the $2,880 – $2,920 range could provide a re-entry opportunity for buyers before another upward move.

Given the current market conditions, XAUUSD is likely to resume its climb toward $3,100 if it remains above $2,880. A confirmed breakout above $2,960 would further strengthen bullish momentum, setting $3,100 as the next target. However, if the price loses support above $2,880, a further decline toward $2,790 may occur before the bullish trend continues.

Gold Short-Term Trend: Bearish

Gold (XAUUSD) has entered a short-term bearish correction on the four-hour chart, with prices retreating from resistance at $2,960. The 9-period SMA at $2,940 now serves as dynamic resistance, adding to the downward pressure. RSI has dropped to 50.14, signaling weakening bullish momentum and a shift toward neutral-to-bearish sentiment. A break below the $2,880 support level could lead to further declines toward $2,790. Despite this short-term pullback, the broader bullish trend remains intact, and traders may watch for potential forex signals indicating a reversal or continuation of the trend.

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