Gold Price Analysis: XAU/USD looks to extend losses below $1,780
|- XAU/USD off the day’s high on the price correction in the Asian session
- More weakness if it slips below $1,780.
- Overbought momentum oscillators reflect the wait-and-hold approach.
Gold prices surrendered the previous day’s gains and are looking to extend pullback in the Asian session. The pair peaked at $1,793.50 but lost its ground and is looking to refresh the daily lows.
At the time of writing, XAU/USD is trading at $1,785.05, down 0.38% on the day.
XAU/USD 4-hour chart:
On the 4-hour chart, the pair faces rejection near the highs of $1,800 and forms the spinning top candlestick pattern, which signifies reversal in the prevailing trend. The selling intensified as soon as the price dropped below the $1,788.87 level. On moving lower, XAU/USD bears will first target the $1,780 horizontal support zone and then would march toward the $1,775 resistance turned support area. Finally, the price will pursue the action to retest Monday’s low of $1,767.44.
The Moving Average Convergence Divergence (MACD) indicator is placed above the midline, however, with receding bullish momentum. Any uptick in the MACD will ask for a reversal back to the $1,790 level, followed by Monday’s high at $1,798.02. It would not be an exaggeration to say that, above $1,800, the next on the cards will be February 23 highs at $1,816.07.
XAU/USD additional 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.