Gold technical analysis: Trades below $1,500, looks south on bearish crossover
|- Gold is looking south with the 4-hour chart reporting a bearish crossover.
- A drop to the 50-day MA support looks likely. The bear case would weaken above $1,517.
Gold is currently trading in a sideways manner around $1.498, having hit a high of $1,512 on Monday.
The 4-hour chart shows the 50-period moving average has crossed below the 200-period moving average. That bearish crossover indicates the path of least resistance is to the higher side.
On the downside, the key support is seen at $1,472 (50-day moving average).
The bearish case would weaken if prices find acceptance $1,517 (Aug. 30 low). That would invalidate the double top bearish reversal pattern confirmed on Sept. 6.
As of now, however, a move above $1,517 looks unlikely. It is worth noting that the yellow metal failed to hold onto gains above $1,510 on Monday despite the Saudi attacks and the resulting risk-off tone. So, it seems safe to say that the bulls are exhausted and there is scope for a deeper pullback to the 50-day MA.
4-hour chart
Trend: Bearish
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.