Gold Continues Its Downward Move as It Targets the Low of $1,791

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

Gold (XAUUSD) Long-term Trend: Bearish
Gold is in a downtrend as price breaks below the moving averages as it targets the low of $1,791. On May 2, XAUUSD declined to the low of $1,854 and made an upward correction. The uptrend has been repelled as the market continues its downward move. Meanwhile, on March 16 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that Gold will fall to level 1.618 Fibonacci extension or $1,795.31 From the price action, the selling pressure has reached the low of $1,875.79.

Daily Chart Indicators Reading:
Gold is at level 38 of the Relative Strength Index for period 14. XAUUSD is trading in the downtrend zone and it is approaching the oversold region. It has a bearish crossover. The 21-day line SMA crosses below the 50-day line SMA indicating a sell order. The 21-day SMA and the 50-day SMA are sloping downward indicating the downtrend.

Gold (XAUUSD) Medium-term bias: Bearish
On the 4-hour chart, Gold is in a downtrend. The selling pressure was accelerated as it faced rejection at the high of $1,998.46. The market declined to the low of $1,850.46 and made an upward correction. The uptrend was repelled at $1,909 as it declined again to the downside.

4-hour Chart Indicators Reading
XAUUSD is below the 40% range of the daily stochastic. The market is in bearish momentum. The 21-day SMA and the 50-day SMA are sloping downward indicating the downtrend.

General Outlook for Gold (XAUUSD)
Gold’s (XAUUSD) price is in a downtrend as it targets the low of $1,791. On May 5, Gold faced another rejection indicating a possible fall. The market will further decline to the low of $1.791.


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