Gold Price Analysis: Bounces from $1,670, but bias remains bearish

  • Gold's daily chart is flashing a bearish candlestick pattern. 
  • The yellow metal is stuck in a falling channel on the hourly chart. 

Gold is currently trading near $1,678 per ounce, having printed a session low of $1,670 an hour ago. 

The bias remains bearish despite the price bounce, as the hourly chart bearish channel is intact. Additionally, the daily chart is reporting a bearish doji reversal pattern, which comprises a doji candle near or at market tops, a sign of bull fatigue, and a bearish follow through in the form of a red candle on the following day. 

The yellow metal created a doji candle on Thursday and fell by over 2% on Friday to confirm a bearish doji reversal. 

All in all, the path of least resistance appears to be on downside and prices could fall to $1,650 in the short-term. That said, the long-term bias remains constructive with the metal likely to pick up a bid on potential coronavirus-led risk aversion. 

Many observers believe the stock markets are not out of the woods yet and could face renewed selling pressure due to ever strengthening prospects of a prolonged economic downturn, strengthening haven demand for the zero-yielding metal. 

“Just one of the reasons is the stock market crisis. During times of uncertainty, precious metals shine. For many young investors, this is the first time they have experienced sharp drawdowns in their passive, index driven portfolio. In the months to come, we expect these young investors to appreciate the capital preservation powers of precious metals,”  said Ken Lewis, CEO of OneGold & APMEX. 

As of Friday, the S&P 500 was reporting over 25 percent gains on the low of 2,192 registered on March 24. 

Hourly chart

Daily chart

Trend: Bearish

Technical levels


Today last price 1678
Today Daily Change -5.86
Today Daily Change % -0.35
Today daily open 1683.62
Daily SMA20 1638.62
Daily SMA50 1613.85
Daily SMA100 1569.03
Daily SMA200 1526.76
Previous Daily High 1718.99
Previous Daily Low 1679.7
Previous Weekly High 1747.82
Previous Weekly Low 1679.7
Previous Monthly High 1703.27
Previous Monthly Low 1451.3
Daily Fibonacci 38.2% 1694.71
Daily Fibonacci 61.8% 1703.98
Daily Pivot Point S1 1669.22
Daily Pivot Point S2 1654.81
Daily Pivot Point S3 1629.93
Daily Pivot Point R1 1708.51
Daily Pivot Point R2 1733.39
Daily Pivot Point R3 1747.8



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

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD is trading closer to 1.1750, paring its recovery from earlier in the day as the safe-haven dollar is bid. US Consumer Sentiment missed estimates with 72 points in September. The financial woes of China's Evergrande are weighing on sentiment.


GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 


XAU/USD surrenders intraday gains, drops closer to $1,750 level

Gold struggled to preserve its intraday gains and dropped to the lower end of the daily trading range during the early North American session. 

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more