Gold Price Analysis: Sell-off comes to an abrupt halt at a key technical zone


  • Gold is trading 0.77% lower on Wednesday after a great run.
  • The price came to a stop at the USD 1760 per ounce area.

Spot Gold 1-hour chart

Gold has had a sharp sell-off on Thursday despite the greenback also moving lower. Looking at the fixed income markets there does seem to have been some rotation as the yields fell over the last couple of hours. In the last hourly candle, the US 10 year treasury yield fell 3.24% but remains 3.31% higher on the session. 

Looking at the hourly chart below, the price did manage to print below the trendline. The trendline is also a prominent feature in the 4-hour chart as it connects to a swing low you cannot see on the hourly chart. This trendline matched up pretty close to a support level at USD 1760.00 per troy ounce. The combination of the two has led the price to stall and may cap the losses to 0.77% on Wednesday.

Both indicators have turned to the downside. The MACD histogram is firmly in the red but the lagging signal line is currently just above the mid-point. The Relative Strength Index just about hit the oversold area but there could be a bullish failure swing to the upside forming. 

Overall the trend is still very much in an upward trajectory. This could just be a small retracement on its way to USD 1800 per troy ounce, Once a lower high lower low pattern is made we could consider a technical trend change but for now, this seems to be a blip in an otherwise very strong uptrend.

Gold Technical Analysis

Additional levels

XAU/USD

Overview
Today last price 1767.57
Today Daily Change -12.86
Today Daily Change % -0.72
Today daily open 1780.43
 
Trends
Daily SMA20 1736.34
Daily SMA50 1725.54
Daily SMA100 1672.07
Daily SMA200 1589.35
 
Levels
Previous Daily High 1785.91
Previous Daily Low 1764.7
Previous Weekly High 1779.41
Previous Weekly Low 1742.97
Previous Monthly High 1785.91
Previous Monthly Low 1670.76
Daily Fibonacci 38.2% 1777.81
Daily Fibonacci 61.8% 1772.8
Daily Pivot Point S1 1768.12
Daily Pivot Point S2 1755.8
Daily Pivot Point S3 1746.91
Daily Pivot Point R1 1789.33
Daily Pivot Point R2 1798.22
Daily Pivot Point R3 1810.54

 

 

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