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

Overview
Today last price 1713.35
Today Daily Change -10.41
Today Daily Change % -0.60%
Today daily open 1723.76
 
Trends
Daily SMA20 1800.54
Daily SMA50 1842.14
Daily SMA100 1856.19
Daily SMA200 1860.25
 
Levels
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

 

 

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