Gold (XAUUSD) Drops Sharply After Facing Rejection at $1,830

Azeez Mustapha
6 August 2021 | Updated: 6 August 2021

Key Resistance Levels: $1,900, $1,950, $2000
Key Support Levels: $1,750, $1, 700,$1,650

Gold (XAUUSD) Long-term Trend: Bearish
Gold price faces rejection twice at level $1,830 as the market declines sharply to the low of level $1,761. The bears are retesting the previous low at level $1,761 to break below it. If price breaks the previous support, the market will decline to a $1,689 low. Meanwhile, on June 17 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that Gold will fall to level 1.618 Fibonacci extension or level $1,667.95. From the price action, the market has reached a low of $1,762. Further downside is expected.

XAUUSD – Daily Chart

Daily Chart Indicators Reading:
Gold is at level 32 of the Relative Strength Index period 14. It indicates that Gold is approaching the oversold region of the market. The 21-day SMA and 50-day SMA are sloping downward indicating the downtrend.

Gold (XAUUSD) Medium-term bias: Bearish
On the 4 hour chart, the Gold price fell sharply to the previous low at a level $1,761. XAUUSD has fallen to the old region of the market. Further downside is likely if price breaks the previous support. The previous support is being retested by the bears.

XAUUSD – 4 Hour Chart

4-hour Chart Indicators Reading
Gold is below the 20% range of the daily stochastic. It indicates that the market has reached the overbought region of the market. The 21-day SMA and the 50-day SMA are sloping upward indicating the uptrend.

General Outlook for Gold (XAUUSD)
XAUUSD has fallen to the previous low of June 30. The market will resume upward if the current support holds. However, the Fibonacci tool has indicated a further downward movement of Gold.


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Azeez Mustapha

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.