Gold Price Forecast: XAUUSD points to resume the downtrend
|Gold Price rebounds from two-month lows. A good selling opportunity? FXStreet’s Dhwani Mehta reports.
Gold Price eyes acceptance above Fibonacci 23.6%
“XAUUSD has recaptured the $1,902 hurdle, which is the Fibonacci Retracement (Fibo) level of the correction from April 18 highs of $1,998 to the two-month troughs of $1,872. If bulls manage to find a strong foothold above the latter on a daily closing basis, then the recovery could extend towards the April 26 highs of $1,911. Further up, the Fibo 38.2% of the same decline at $1,921 will challenge the bearish commitments.”
“The 14-day Relative Strength Index (RSI) is edging higher but remains well below the midline, suggesting that the bearish bias remains intact in the near-term. Also, a bear cross confirmed Wednesday is in play, adding credence to the resumption of the downtrend.”
“Selling resurgence could see a retest of the daily lows at $1,892, below which the April 27 low of $1,881 will be targeted. Thursday’s low of 1,872 will be the level to beat for XAUUSD bulls should bears keep their sights on the $1,850 psychological barrier.”
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.