Gold Consolidates above $1,660 Support as Sellers Threaten to Short

Key Resistance Levels: $1,900, $1,950, $2000
Key Support Levels: $1,750, $1, 700, $1,650

Gold (XAUUSD) Long-term Trend: Bearish
Gold declines to the low of $1,660 but sellers threaten to short. Gold is likely to further decline because of the rejection at the 21-day line SMA. Meanwhile, on September 2 downtrend; a retraced candle body tested the 61.8 % Fibonacci retracement level. The retracement suggests that Gold will fall to level 1.618 Fibonacci extension or $1,644.62.

Daily Chart Indicators Reading:
XAUUSD is at level 32 of the Relative Strength Index for period 14. The Gold is in the bearish trend zone as it approaches the oversold region. The price bars are below the moving average lines which are responsible for the current selling pressure. The 21-day line SMA and the 50 –day line SMA are sloping downward indicating a downtrend.


Gold (XAUUSD) Medium-term bias: Bearish
On a weekly chart, Gold is in a downward move. The price is making a series of lower highs and lower lows. On July 11 downtrend; a retraced candle body tested the 50 % Fibonacci retracement level. The retracement suggests that Gold will fall to level 2.0 Fibonacci extension or $1,489.93.

Weekly Chart Indicators Reading
Gold is below the 20% range of the daily stochastic. The market is in a bearish momentum and has reached the oversold region. The selling pressure is reaching bearish exhaustion. The price bars are below the 21-day SMA and the 50-day SMA indicating a further downward move.

General Outlook for Gold (XAUUSD)
According to the price indicator, Gold (XAUUSD) is likely to further decline as sellers threaten to short. The market has fallen to the oversold region as buyers are expected to emerge.


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