Gold Price Surges but Shows Signs of Cooling

The price of Gold has surged above $4,500 resistance but shows signs of cooling as sellers reappear in the market. The precious metal found bids near $4,300 and $4,320 against the US Dollar before starting a decent increase after closing above $4,450.

The 4-hour chart of XAU/USD indicates that the price settled above the $4,500 pivot level, the 100 Simple Moving Average (red, 4 hours), and the 200 Simple Moving Average (green, 4 hours). The bulls pushed the price toward $4,700 before a minor pullback.

If there is a downside correction, the price could test the $4,510 support or the 50% Fib retracement level of the upward move from the $4,324 swing low to the $4,696 high. A clear move above $4,700 could open the door for more upside.