Gold Price Analysis: Retreats to 200-HMA, bearish candle on weekly chart


  • Gold has fallen back to key MA support with the US equity index futures turning higher. 
  • The metal's weekly chart shows scope for a deeper drop during the week ahead. 

Gold has surrendered gains seen in early Asia and could revisit the Feb. 5 low of $1,548 during the week ahead. 

The yellow metal is currently trading around the 200-hour moving average (HMA) at $1,570, having hit a high of $1,576 in early Asia.

The pullback could be associated with the positive turn around in the US equity index futures. At press time, the futures on the S&P 500 are reporting a 0.10% gain compared to a 0.5% drop seen in early Asia. 

The safe-haven metal may continue to lose ground, as early signs of bearish reversal have emerged on the weekly chart. 

Gold created bearish outside week candle last week, which occurs when prices drop engulfing the preceding candle's trading range (high and low). That candle represents bullish exhaustion and often precedes notable downturns. 

The immediate support at $1,548 (Feb. 5 low), if breached, could cause more sellers to join the market, yielding a drop to $1,519 (Oct. 3 high). On the higher side, resistance is seen at $1,593. A close higher would open the doors to $1,611 (Jan. 8 high). 

Weekly chart

Trend: Bearish

Technical levels

XAU/USD

Overview
Today last price 1570.55
Today Daily Change 0.42
Today Daily Change % 0.03
Today daily open 1570.13
 
Trends
Daily SMA20 1564.68
Daily SMA50 1526.34
Daily SMA100 1506.11
Daily SMA200 1459.12
 
Levels
Previous Daily High 1574.14
Previous Daily Low 1560.5
Previous Weekly High 1594.01
Previous Weekly Low 1547.56
Previous Monthly High 1611.53
Previous Monthly Low 1517.1
Daily Fibonacci 38.2% 1568.93
Daily Fibonacci 61.8% 1565.71
Daily Pivot Point S1 1562.37
Daily Pivot Point S2 1554.62
Daily Pivot Point S3 1548.73
Daily Pivot Point R1 1576.01
Daily Pivot Point R2 1581.9
Daily Pivot Point R3 1589.65

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD trades above 1.18 ahead of US retail sales

EUR/USD is trading above 1.18, off the highs. The dollar advanced along with higher yields, the ongoing fiscal impasse, and upbeat jobless claims. The focus shifts to US retail sales for July. 

EUR/USD News

GBP/USD trades above 1.3050 ahead of more reopening steps

GBP/USD is trading above 1.3050, off the lows. The UK is set to ease some restrictions over the weekend, extending its gradual exit from lockdown. The US dollar is taking a break after gaining and ahead of retail sales. 

GBP/USD News

Gold trades with modest losses, below $1950 level

Gold traded with a mild negative bias through the early European session and was last seen hovering near the lower end of its daily range, around the $1945 region.

Gold News

Forex Today: Three reasons for the greenback comeback, all eyes on retail sales

The US dollar has been gaining ground once again as the bond-yield pendulum swings up again. Washington's fiscal impasse, a weak bond auction, upbeat jobless claims, and Sino-American relations will make way for retail sales figures for July. 

Read more

WTI drops to $42 amid poor Chinese data led risk-aversion

WTI (futures on Nymex) has come under fresh selling pressure and attacks the $42 level, as risk-aversion seeps into the European session and diminishes the demand for the higher-yielding assets such as oil.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures