Gold Is in a Sideways Trend as It Holds Above $1,800 Support
Key Resistance Levels: $1,900, $1,950, $2000
Key Support Levels: $1,750, $1, 700, $1,650
Gold (XAUUSD) Long-term Trend: Bearish
XAUUSD’s price is in a downtrend as price holds above $1,800 support. The downtrend subsided after falling to the low of $1,799 on May 13. Since May 13, the market has been in a sideways move. On May 16 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that Gold will fall but reverse t level 1.272 Fibonacci extension or $1,742.93.
Daily Chart Indicators Reading:
Gold is at level 44 of the Relative Strength Index for period 14. XAUUSD is in the bearish trend zone and capable of further decline. The 21-day line SMA and the 50 –day line SMA are sloping southward indicating a downtrend. Gold price bars have fallen below the moving averages indicating a further decline.
Gold (XAUUSD) Medium-term bias: Ranging
On the 4-hour chart, Gold is in a sideways trend but the price bars are below the moving averages. Since June 22, the market has been fluctuating between $1,800 and $1,850 price levels. The market will resume upward if price breaks above the moving averages.
4-hour Chart Indicators Reading
XAUUSD is above the 25% range of the daily stochastic. The market is in a bullish momentum. . The 21-day SMA and the 50-day SMA are sloping horizontally indicating a sideways move.
General Outlook for Gold (XAUUSD)
Gold’s (XAUUSD) price is in a downtrend as it holds above $1,800 support. The market has reached bearish exhaustion. Gold has been consolidating above the $1,786 support since May 16.
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