Gold Price Analysis: XAU/USD bears flirt with a short-term ascending trend-line support

  • Gold extended this week’s retracement slide and remained depressed for the second straight day.
  • The technical set-up seems tilted in favour of bears and supports prospects for further weakness.
  • Break below a near three-month-old ascending trend-line will add credence to the bearish bias.

Gold remained under some selling pressure for the second consecutive session on Thursday and extended this week’s retracement slide from the $1992 area. The downward momentum dragged the commodity to fresh weekly lows, with bears now eyeing a sustained breakthrough a near three-month-old ascending trend-line.

Meanwhile, technical indicators on hourly charts have been gaining negative traction and have just started drifting in the bearish territory on the daily chart. The set-up favours bearish traders and supports prospects for an eventual breakthrough the mentioned trend-line amid sustained buying around the greenback.

Sustained weakness below will be seen as a fresh trigger for bearish traders and turn the commodity vulnerable to slide back towards the $1900 round-figure mark. Some follow-through selling should pave the way for additional weakness, possibly back towards August monthly swing lows support near the $1863 region.

On the flip side, immediate resistance is now pegged near the $1948-50 horizontal zone, above which bulls are likely to push the commodity back towards the $1970 supply zone. The momentum could further get extended towards weekly tops, around the $1692 level before the metal aims back to reclaim the key $2000 psychological mark.

Gold daily chart

fxsoriginal

Technical levels to watch

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Source

Leave a Reply

Your email address will not be published. Required fields are marked *