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On Thursday, gold (XAU/USD) extended its positive momentum for a second consecutive day, although it continues to trade within the previous day's range.
From a technical perspective, the rally driven by short-covering encountered resistance at the 50-period Simple Moving Average (SMA), indicating that the bearish bias remains intact in the near term. At the same time, momentum indicators have improved: the MACD has turned higher into positive territory, while the RSI remains around the 54 level in positive territory.
A sustained move above the 20-period Simple Moving Average (SMA) would create conditions for a further recovery, although the upward potential remains limited under the current market setup. The nearest resistance is located at $4,122.14, followed by the 100-period SMA at $4,145 and the psychological $4,200 level. The next upward targets are $4,216, followed by the 200-period Exponential Moving Average (EMA) and the 200-period Simple Moving Average (SMA).
On the other hand, initial support is located at $4,050, a level that has already been tested. A further decline could bring the price toward the 20-period Simple Moving Average (SMA), the psychological $4,000 level, and another test of the structural low near $3,940.
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