Technical Analysis

GOLD Price Analysis – February 28, 2023

By LonghornFX Technical Analysis
Feb 28, 20233 min

Daily Price Outlook

The price of gold (XAU/USD) is currently trading at $1,818.91, which is a slight increase of 0.09% over the last 24 hours. Despite experiencing a small recovery from its lowest point this year, the price of gold has remained within a narrow range.

Upcoming PMI Ahead

Gold investors are closely monitoring the latest data on durable goods, ISM Manufacturing PMI, and ISM Services PMI this week. As hawkish Fed concerns have eased, market sentiment has improved.

On February 27, durable goods orders fell by 4.5% in January, contrary to experts' predictions of a 3.7% increase, which weighed on the US Dollar. The US Dollar Index (DXY) is trading at 104.20 after suffering a significant loss, while the US 10-year Treasury rate fluctuates around 3.92%.

However, the precious metal may recover from its recent bearish performance as investors turn their attention to the United States ISM Manufacturing PMI (Feb) on Wednesday, March 1. Although the US Manufacturing PMI has declined for the past three consecutive months, the data may show a smaller contraction this time.

US-China Tensions Escalate Amid Disagreement at G20 Finance Ministers Meeting

The G20 finance ministers' meeting held in Bengaluru on February 25 failed to reach a consensus as China and Russia refused to sign a statement condemning Russia's invasion of Ukraine and denouncing the use of nuclear weapons.

As a result, the meeting concluded without a joint statement from the finance ministers and central bank governors of the member countries. Furthermore, the finance leaders of the world's major economies heavily criticized Russia for its war in Ukraine.

The tensions between the United States and China have increased as Beijing did not participate in the G20 meeting. In such circumstances, investors often turn to gold as a "safe haven" asset, leading to an increase in demand and price.

 Gold Price Chart - Source: Tradingview

Gold (XAU/USD) Intraday Technical Levels

Support      Resistance

1816            1832

1809            1841

1800            1848

Pivot Point: 1825

Gold (XAU/USD) – Technical Outlook

Gold prices are currently hovering around the $1,815 support zone, weighed down by the downward channel and descending triangle pattern visible on the 4-hour timeframe. In the event that the $1,820 double-bottom pattern is breached, the price of gold may be pressured to move down toward the $1,810 or $1,799 support zones.

Although the RSI and MACD indicators are still showing selling momentum, the MACD histograms have been decreasing in size, indicating a weakening selling bias. Moreover, the 50-day simple moving average is situated around the $1,830 level, potentially serving as a resistance barrier to any upward movement.


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