Gold Price Analysis: There is a bearish signal on the 4-hour chart

Gold is trading just above flat in a lacklustre session due to a US holiday.
Leading into next week there is a bearish divergence set up on the 4-hour chart.

Rajan Dhall, MSTA FX Daily

Gold 4-hour chart

Price action has been slow on Friday due to the bank holiday in the US as the nation celebrates independence day. This week has been an interesting one as there has been some good economic data but some very bad coronavirus news in the US.

Despite the equities markets moving higher, gold also managed to push higher too. However, there are some signs that the momentum may be slowing. On the 4-hour chart below, the Relative Strength Index indicator is showing a lower high while the price made a higher wave high. This signal is called a bearish divergence and means the bull trend could be running out of steam.

A confirmation of this signal would be a bearish break of the USD 1764 per troy ounce level. This could also make a lower high lower low wave sequence. Overall the market is still in a firm uptrend and could just need a pullback before a run to higher levels. The next major resistance is still the USD 1800 per troy ounce level.

Additional levels

XAU/USD

Overview
Today last price	1774.86
Today Daily Change	0.12
Today Daily Change %	0.01
Today daily open	1774.74

Trends
Daily SMA20	1742.95
Daily SMA50	1727.55
Daily SMA100	1676.16
Daily SMA200	1591.9

Levels
Previous Daily High	1779.68
Previous Daily Low	1757.7
Previous Weekly High	1779.41
Previous Weekly Low	1742.97
Previous Monthly High	1785.91
Previous Monthly Low	1670.76
Daily Fibonacci 38.2%	1771.28
Daily Fibonacci 61.8%	1766.1
Daily Pivot Point S1	1761.73
Daily Pivot Point S2	1748.73
Daily Pivot Point S3	1739.75
Daily Pivot Point R1	1783.71
Daily Pivot Point R2	1792.69
Daily Pivot Point R3	1805.69

Author

Rajan Dhall, MSTA

FX Daily

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

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