Gold, Chart of the Week: XAU/USD bearish bias forecast below $1,760


  • Gold is on a bearish path while below the 200 four-hour EMA.
  • The monthly 61.8% Golden Ratio is eyed for the weeks ahead. 

Gold has a compelling chart, especially from a top-down analysis that is presented below, offering a bearish bias in the main. We are in the last week of the month, and the markets are bracing for plenty of outcomes to critical market themes and events, which are sure to bring about volatility

Gold monthly chart

From a monthly perspective, the price is en route to the 61.8% Fibonacci level at $1,690 in the last week of the month. A bearish close for September makes for a bearish continuation bias for October.  In scenario 1, as illustrated on the chart above, the $1,600 level will be under pressure. In scenario 2, where the price is supported above the 61.8% ratio, the bulls will be seeking a break above $1,836 to put them back in control with $2,000 eyed once again. 

Gold weekly chart

From a weekly outlook, the price is being supported near July lows in the $1,750s. Looking to the left, the price has made a series of lower lows until the summer and autumn's double top highs near $1,830. A break below $1,750 opens risk to the $1,680s initially. 

Gold daily chart

Looking at the daily chart, we are in the throes of a downside continuation and a test of the corrections as illustrated as A and B on the chart above. The targets are based on the Fibonacci retracements at $1,732 and $1,728 of the correction's range. 

Gold 4-hour chart

From a 4-hour study, the price is in a bearish trend while below the 200 exponential moving average (EMA) and the divergence of the 50 and 20 EMAs. The price is attempting to retest the 20 EMA, which might play out a little longer. However, so long as the price remains below $1,760 and the RSI below 50, then the bias is to the downside. 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD drops towards 1.1300 on dovish ECB headlines

EUR/USD is extending the drop towards 1.1300 after the ECB is debating over a potential increase in the APP at its meeting next week. The US dollar rebounds amid a cautious mood. Omicron, US-China woes keep investors on the edge.

EUR/USD News

GBP/USD battles 1.3200 amid Omicron jitters, USD rebound

GBP/USD is trading flat around 1.3200, struggling to capitalize on the overnight goodish rebound from a one-year low. Fresh COVID-19 jitters pushed back BoE rate hike expectations and undermined the pound. Resurgent USD demand further stalled aggressive bullish bets.

GBP/USD News

Gold eases towards $1,780 on resurgent USD demand

Gold remains on the back foot below $1,790 amid broad US dollar reboud. Market sentiment dwindles as virus-linked news battles geopolitical fears, Fed rate hike concerns. Friday’s US CPI becomes crucial as inflation expectations improve.

Gold News

Analysts believe Ripple could beat SEC lawsuit on one condition

Experts are weighing in on the possible closure of the payments giant's lawsuit with the SEC. Analysts predict that the payment giant's win in the SEC vs. Ripple case could push XRP to a new high.

Read more

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

Majors

Cryptocurrencies

Signatures