Gold Price Analysis: XAU/USD bears embrace for sub-$1,700 area

  • Gold stays depressed near 8.5-month low, recently bounced off intraday bottom.
  • Oversold RSI probes sustained trading below six-week-old resistance, previous support.
  • 61.8% Fibonacci retracement, falling trend line from August lure gold bears.

Gold struggles to carry the uptick from an intraday low of $1,707, also the lowest since mid-June 2020, while taking rounds to $1,713, down 0.62% on a day, during early Tuesday.

In doing so, the yellow metal drops for the sixth day in a row while extending the downside break of a descending support line from January 18.

Although RSI conditions keep testing gold sellers, a sustained break of the previous key support directs the bullion further towards the south.

In doing so, the $1,700 becomes the immediate support ahead of a 61.8% Fibonacci retracement level of March-August 2020 upside, near $1,688. If at all the metal bears refrain from stepping back near $1,688, a downward sloping trend line from August 12, at $1,682 now, will be the key to watch.

On the contrary, the previous support line, currently around $1,756, precedes 50% of the Fibonacci retracement near $1,763 to test the commodity’s corrective pullback.

Though, the bulls will wait for a clear break of a two-month-old resistance line, at $1,800 now, for fresh entries.

Gold daily chart

Trend: Bearish

Additional important levels

Today last price 1713.35
Today Daily Change -10.41
Today Daily Change % -0.60%
Today daily open 1723.76
Daily SMA20 1800.54
Daily SMA50 1842.14
Daily SMA100 1856.19
Daily SMA200 1860.25
Previous Daily High 1759.98
Previous Daily Low 1719.72
Previous Weekly High 1816.07
Previous Weekly Low 1717.24
Previous Monthly High 1871.9
Previous Monthly Low 1717.24
Daily Fibonacci 38.2% 1735.1
Daily Fibonacci 61.8% 1744.6
Daily Pivot Point S1 1708.99
Daily Pivot Point S2 1694.23
Daily Pivot Point S3 1668.73
Daily Pivot Point R1 1749.25
Daily Pivot Point R2 1774.75
Daily Pivot Point R3 1789.51



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

Take advantage of market volatility with our daily Forex, Crypto and Indices Trade Ideas!

Become Premium!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD steady above 1.2000 as investors wait for the ECB

EUR/USD is unchanged around 1.2030 for a second consecutive day, as speculative interest holds back ahead of the European Central Bank decision.


GBP/USD trades above 1.39 as the dollar takes a breather

GBP/USD has bounced back above 1.39, recovering as the dollar cedes some ground. The greenback benefited from the risk-off mood, while the pound struggles after CPI missed with 0.7% and as UK PM Johnson warns of winter covid wave.


EUR/USD steady above 1.2000 as investors wait for the ECB

EUR/USD is unchanged around 1.2030 for a second consecutive day, as speculative interest holds back ahead of the European Central Bank decision.


Enjin Coin price shakes off selling pressure, primed for a 25% rally

Enjin Coin price outlook has shifted to neutral. It is on the verge of completing a high probability bottoming pattern, showing a positive divergence from some of the other cryptocurrencies that have printed new correction lows over the last couple of days. 

Read more

European Central Bank Preview: Five reasons for Lagarde to lift the euro

The German ZEW Economic Sentiment, the Sentix Investor Confidence and Markit's Purchasing Managers' Indexes have been rising and surprising to the upside in recent months. 

Read more