Gold Holds above the $1,680 Support as Sellers Resume Selling Pressure

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Azeez Mustapha

Updated: 13 October 2022

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 sellers resume selling pressure. XAUUSD’s price has been making a series of lower highs and lower lows. On September 1, XAUUSD declined to the low of $1,688 and resumed an upward correction. Incidentally, the downtrend will resume if the current support at $1,688 is breached. In other words, the selling pressure will resume, if the current lower low is breached.

Gold Holds above the $1,680 Support as Sellers Resume Selling Pressure — XAUUSD – Daily Chart

Daily Chart Indicators Reading:
XAUUSD is at level 43 of the Relative Strength Index for period 14. The Gold is in a downtrend zone despite the upward correction. In the downtrend zone, the market will continue to fall. The price bars are below the moving average lines which indicate further 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. On July 18, XAUUSD declined to the low of $1,680.95 as bulls bought the dips. After an upward correction, the market slumped to the previous low at $1, 680’ 95. Nonetheless, the downtrend will resume if the current support is breached. On the July 18 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 $1,490.25. From the price action, the bears are still retesting the current support to break below it.

Gold Holds above the ,680 Support as Sellers Resume Selling Pressure — XAUUSD – Weekly Chart

Weekly Chart Indicators Reading
Gold is below the 40% range of the daily stochastic. The market is in a bearish momentum. The price bars are below the 21-day line SMA and the 50-day line SMA indicating a further downward move. The moving average is sloping horizontally.

General Outlook for Gold (XAUUSD)
Gold (XAUUSD) is trading in the downtrend zone as sellers resume selling pressure. XAUUSD will decline if the current support is breached.

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