Gold Is in an Oversold Region as It Holds Above $1,700

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 holds above $1,700. XAUUSD has fallen to the historical price level of August 6, 2021. On August 6, 2021, the bulls bought the dips as Gold resumed its uptrend. The current downtrend has reached the oversold region of the market. Buyers are likely to be attracted. Meanwhile, on May 16 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that Gold will fall to level 1.272 Fibonacci extension or $1,742. 93. From the price action, the market has fallen to the low of $1,697.

Daily Chart Indicators Reading:
Gold is at level 24 of the Relative Strength Index for period 14. It has fallen to the oversold region of the market. The 21-day line SMA and the 50 –day line SMA are sloping southward indicating a downtrend. Gold price bars are below the moving average lines indicating a further decline.

Gold (XAUUSD) Medium-term bias: Bearish
On the 4-hour chart, Gold is in a downward move. The 21-day line SMA is acting as a resistance to the price bars. On July 13, buyers attempted to push the price above the 21-day line SMA but were repelled. The downtrend has resumed as it fell to the oversold region of the market.

4-hour Chart Indicators Reading
XAUUSD is below the 20% range of the daily stochastic. The market is in bearish momentum and has reached the oversold region. The 21-day SMA and the 50-day SMA are sloping southward indicating a downtrend.

General Outlook for Gold (XAUUSD)
Gold’s (XAUUSD) price is now in the oversold region of the market as it holds above $1,700. The selling pressure is likely to end as buyers emerge.

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