Gold Retests Its Previous Low As It May Further Decline Below $1,805
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 it may further decline below $1,805. The gold price has fallen to the low of $1,784 but pulled back. It is testing the previous low of the May 13 price slump. The market has reached the low of $1809 after pulling back. The selling pressure will resume if price breaks below the May 13 price slump. Alternatively, a rebound will propel the price to break above the moving averages.
Daily Chart Indicators Reading:
Gold is at level 40 of the Relative Strength Index for period 14. XAUUSD is in the bearish trend zone and capable of further decline. Gold price bars are below the moving averages indicating a further decline. The 21-day line SMA and the 50 –day line SMA are sloping southward indicating a downtrend.
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. Gold price is making an upward correction after falling to the low of $1,784. The bears have broken
below the previous low but the bulls bought the dips.
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 and may further decline below $1,805. The RSI is at level 40. It implies Gold is capable of falling into the bearish trend zone.
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