Gold Price News and Forecast: XAU/USD Weekly and 4-hour chart analysis shows there could be slightly more pain to come
|Gold Price Analysis: Depressed below $1,700
Gold prices drop to $1,698.40, intraday low of $1,697.80, amid the early Asian morning on Monday. In doing so, the yellow metal not only fails to cross 100-HMA and 200-HMA but also stays below a seven-day-old falling trend line.
As a result, sellers might be looking for 61.8% Fibonacci retracement of April 21-23 upside, near $1,691, as immediate support during the further downside. Even if the MACD fails to remain strong below $1,691, $1,680 and Friday’s low near $1,670 could lure the bears.
Meanwhile, an upside clearance of 100 and 200-HMAs, respectively near $1,702 and $1,708, could escalate the recovery moves towards short-term resistance line, at $1,717 now.
Gold Price Analysis: Weekly and 4-hour chart analysis shows there could be slightly more pain to come
This week has been dominated by central banks. The market received the latest from the ECB and the Fed and both committed to doing what is nessacery to rebuild their respective economies with stimulus and recovery packages.
Traders and investors have also been looking for details on the phased opening of the major economies. The UK will be hearing from PM Johnson about his phased plan and the US have already received some details from Donald Trump. Some of the European economies have already started to open up their shops and schools but there are still restrictions in many of the worst-hit nations and the market are looking towards Germany and France for more guidance.
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