XAU/USD technical analysis: Gold price rises to six-month high

Gold price formed a solid support base near the $1,232 and $1,233 levels against the US Dollar. The price of XAU/USD started a nice upward move and broke the $1,235, $1,238 and $1,240 resistance levels to move into a positive zone.

Buyers even pushed the price above the $1,244 resistance area. The price tested the $1,250 resistance area and it is currently consolidating gains. It is testing the 23.6% Fib retracement level of the last wave from the $1,239 low to $1,250 high.

On the downside, there is a strong support formed near $1,245 and a bullish trend line on the hourly chart. If there is a downside extension, the price may find support near the $1,246 or $1,245 levels. On the upside, an initial resistance is at $1,250, above which the price could test $1,255.

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