Gold Rebounds as It Approaches the Resistance at $1,720

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 but has rebounded above the $1,622 support as it approaches the resistance at $1,720. XAUUSD’s price has broken above the moving average lines. If it maintains a position above the 50-day SMA, the uptrend will continue. Otherwise, the downtrend will restart and Gold’s price pattern will revert to what it was before. Bulls bought the dips as Gold dropped to a low of $1,621 on September 26. After passing over the moving average lines, XAUUSD has started to reverse upward once more but was halted at the 50-day SMA. On October 19, the bears pushed Gold to the present support. The upward correction has now crossed into an overbought area. If sellers appear in the overbought area, the selling pressure can resume.

Daily Chart Indicators Reading:
On the Relative Strength Index for period 14, Gold is at level 55. As a result, it suggests that XAUUSD has entered the uptrend zone and may continue to rise. The downward slope of the moving average lines continues to indicate a downturn.

Gold (XAUUSD) Medium-term bias: Bullish
On the 4-hour chart, Gold is in an uptrend as it breaks above the moving average lines. XAUUSD has rallied to an overbought region of the market. The current bullish move is likely to face rejection at the recent high.

4-hour Chart Indicators Reading
The daily stochastic’s 80% range is above the price of XAUUSD. The overbought area of the market has been reached. The price of the cryptocurrency is higher than the moving average lines, indicating that Gold will continue to rise.


General Outlook for Gold (XAUUSD)
Gold maintains its position at $1,622 as sellers test the current support but it approaches the resistance at $1,720. Gold’s declining trend is likely to come to a stop. Although the market has entered the overbought zone, Gold has risen above the moving average lines today.

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