Gold Is in a Downward Correction as It Faces Rejection at $1,870

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 is in a downtrend as it faces rejection at $1,870 . The price broke above the 21-day line moving average but retraced above it. Gold is now trading above the 21-day line SMA but below the 50-day line SMA. This implies that XAUUSD will be in a range-bound move between the moving averages. Meanwhile, on May 24 uptrend; a retraced candle body tested the 78.6 % Fibonacci retracement level. The retracement indicates that Gold will rise but reverse at level 1.272 Fibonacci extension or level $1,887.84. The Gold price is likely to be range-bound for a few more days.

Gold Is in a Downward Correction as It Faces Rejection at $1,870
XAUUSD – Daily Chart

Daily Chart Indicators Reading:
Gold is at level 46 of the Relative Strength Index for period 14. XAUUSD is making an upward move as it breaks above the moving averages. The 21-day line SMA and the 50 –day line SMA are sloping downward indicating the downtrend

Gold (XAUUSD) Medium-term bias: Bullish
On the 4-hour chart, Gold is in an uptrend as price breaks above the moving averages. The upward move reached the high of $1.870 but was repelled. Meanwhile, on May 20 uptrend; a retraced candle body tested the 61.8 % Fibonacci retracement level. The retracement indicates that Gold will rise to level 1.618 Fibonacci extension or level $1,873.43.

Gold Is in a Downward Correction as It Faces Rejection at $1,870
XAUUSD – 4 Hour Chart

4-hour Chart Indicators Reading
XAUUSD is below the 80% range of the daily stochastic. The market is in bearish momentum. The 21-day SMA and the 50-day SMA are sloping upward indicating the uptrend.

General Outlook for Gold (XAUUSD)
Gold’s (XAUUSD) price is in a downtrend as it faces rejection at $1,870. The upward correction is facing rejection at the recent high. Gold price is fluctuating below the $1,870 resistance zone


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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.