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

Updated:

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.

Gold Consolidates above $1,660 but Sellers Threaten to Short
XAUUSD – Daily Chart

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.

Gold Consolidates above $1,660 but Sellers Threaten to Short
XAUUSD – Weekly Chart

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.


You can purchase crypto coins here. Buy LBLOCK


Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.