Gold Price Analysis: Sellers look to retain control as XAU/USD fails to reclaim $1,800
|- XAU/USD stays under modest bearish pressure on Wednesday.
- Gold struggles to reclaim $1,800 despite USD weakness.
- $1,780 could be seen as the next target on the downside.
The XAU/USD pair dropped to a two-day low of $1,783 on Wednesday but staged a rebound and managed to close the day above $1,800. However, the pair remains on the back foot despite the broad-based selling pressure surrounding the greenback on Thursday and was last seen losing 0.55% on the day at $1,795.
Gold technical outlook
The Relative Strength Index (RSI) indicator on the four-hour chart moves sideways a little below 50 following Wednesday's drop, showing that XAU/USD struggles to determine a direction in the near-term. Meanwhile, the pair continues to trade below the 20 and 50-period SMAs, suggesting that the next move is likely to be lower.
On the downside, the initial support aligns at $1,790, where the Fibonacci 38.2% retracement of the last week's drop is located. With a break below that level, XAU/USD could extend the slide toward the next Fibonacci retracement level at $1,780.
On the upside, $1,800 (psychological level) could be seen as the first resistance ahead of $1,803 (Fibonacci 61.% retracement) and $1,810 (100 SMA).
Gold four-hour chart
Additional levels to watch for
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.