Gold Price Slip-On Rising Risk Sentiment, Rebounds on 1550 Level

XAUUSD Price Analysis – February 5

Gains in stock markets put the gold price under control. Precious metals are declining for the second day in a row. Notwithstanding financial specialist anxieties about the effect of the Coronavirus, stocks clutched gains. The fall additionally came in the midst of the trading of the US dollar on the rear of positive financial figures.

Key Levels
Resistance Levels: $ 1625, $ 1595, $ 1580
Support Levels: $ 1550, $ 1540, $ 1517

XAUUSD Long-term Trend: Ranging

Gold is presently trending on the level at $ 1,556 per ounce, matching a 0.22% increase in the day as the yellow metal reversed lower from $ 1,594 level on Monday and tested around $ 1,548 level. The precious metal may likely maintain its bearish trend.

Initial price action will likely slide towards the support level at $1,540 level initially. If the resistance holds, we anticipate further falls when broken beneath the $ 1,540 level.

XAUUSD Long-term Trend: Bearish

XAUUSD has been in a declining position since Monday when it breached beneath the short term horizontal support line. The slide continued yesterday too, as the support reached $ 1,550 level before the rebound.

The transient recovery stayed underneath the short-term horizontal obstruction at $ 1,563 level, and today, the price has diminished to stop again near the $ 1,550 level. Given that the metal is trading underneath the previously mentioned upturn line, we will consider the short-term pattern to be negative at this point.

Instrument: XAUUSD
Order: Sell
Entry price: $1,563
Stop: $ 1,575
Target: $1,540

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