Gold Price Analysis: Prints 5-week low, bearish engulfing candle on weekly
|- Gold prints lowest level since Feb. 5, having dropped for a third straight day on Thursday.
- The weekly candle has neutralized the broader bullish outlook.
- A minor corrective bounce may be seen as intraday charts are reporting bullish divergences.
Gold is on the offer for the fourth straight day.
The yellow metal is currently trading at $1,562 per Oz, representing a 0.90% drop on the day, having hit a low of $1,551 a few minutes before press time.
That was the lowest level since Feb. 5. Prices dropped 3.5%, 0.93% and 1.82% on Thursday, Wednesday and Tuesday, respectively.
Focus on the weekly candle
With a drop from $1,704 to $1,551, the yellow metal has engulfed the price action seen in the previous four weeks.
The big bearish engulfing candle suggests the rally from the August 2018 low of $1,1160 has run out of steam. The metal could consolidate with a negative bias in the short-term.
Acceptance under the immediate support at $1,557 (September 2019 high) could cause more sellers to join the market, leading to deeper declines toward $1,500.
On the higher side, consecutive daily closes above $1,600 are needed to revive the immediate bullish view.
At press time, the hourly chart is reporting a bullish divergence of the RSI and the MACD histogram. As a result, the metal could recover to $1,580.
Weekly chart
Hourly chart
Trend: Neutral
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.