(function() { var didInit = false; function initMunchkin() { if(didInit === false) { didInit = true; Munchkin.init('105-GAR-921'); } } var s = document.createElement('script'); s.type = 'text/javascript'; s.defer = true; s.src = '//munchkin.marketo.net/munchkin.js'; s.onreadystatechange = function() { if (this.readyState == 'complete' || this.readyState == 'loaded') { initMunchkin(); } }; s.onload = initMunchkin; document.getElementsByTagName('head')[0].appendChild(s); })();(function(h,o,t,j,a,r){ h.hj=h.hj||function(){(h.hj.q=h.hj.q||[]).push(arguments)}; h._hjSettings={hjid:1422437,hjsv:6}; a=o.getElementsByTagName('head')[0]; r=o.createElement('script');r.defer=1; r.src=t+h._hjSettings.hjid+j+h._hjSettings.hjsv; a.appendChild(r); })(window,document,'https://static.hotjar.com/c/hotjar-','.js?sv=');

Gold Under Pressure—Could Another Leg Lower Be Coming?

Article background

Aayush Jindal

Key Highlights

  • Gold declined toward $4,120 and started a consolidation phase.
  • A bearish trend line is forming with resistance at $4,260 on the 4-hour chart.
  • WTI Crude Oil dipped below $92.50 and might extend losses.
  • EUR/USD is still showing bearish signs below 1.1275.

Gold Price Technical Analysis

Gold failed to stay above $4,250 and declined further against the US Dollar. The price dipped below $4,200 and even tested the $4,120 support.

The 4-hour chart of XAU/USD indicates that the price traded as low as $4,110 and settled well below the 100 Simple Moving Average (red, 4 hours) and the 200 Simple Moving Average (green, 4 hours). The bulls attempted a recovery wave but faced resistance near the 23.6% Fib retracement level of the downward move from the $4,510 swing high to the $4,110 low at $4,200.

The first key resistance could be $4,260, the 100 Simple Moving Average (red, 4 hours), and a bearish trend line. A close above $4,260 could send the price toward the 50% Fib retracement level at $4,310.

The main resistance might be near the 200 Simple Moving Average (green, 4 hours) at $4,375. A clear move above $4,375 could open the door for more upside. In the stated case, the bulls could aim for a move toward $4,500.

If there is a fresh decline, the price could test $4,080. The first major support sits at $4,050. The next support could be $4,000, below which the price might slide to $3,850.

Looking at EUR/USD, the bears remained in action and might aim for a drop below 1.1120 in the coming sessions.

Economic Releases to Watch Today

  • Fed's Williams speech.
  • Fed's Bowman speech.
Excellent
Google Reviews
Open a Live accountOpen a Demo account
Loading