Gold Price Analysis: XAU/USD breaches 100-day SMA for first since March


  • Gold has found acceptance below the 100-day SMA support. 
  • The breakdown is backed by bearish readings on key indicators. 
  • A bigger decline may be in the offing.

Gold looks south, having breached the widely-tracked 100-day simple moving average (SMA) support for the first time since March 23. 

The yellow metal fell by 1.67% on Wednesday and closed below the 100-day SMA, flipping the long-term technical support into resistance. The SMA is currently located at $1,887, and the metal is trading at $1,878 per ounce. 

Wednesday's drop also marked a downside break of the ascending channel represented by trendlines connecting Sept. 28 and Oct. 14 lows and Oct. 2 and Oct. 12 highs. 

The rising channel breakdown and the 100-day SMA violation are backed by a below-50 or bearish reading on the 14-day relative strength index. Further, the MACD histogram has crossed below zero, indicating a bearish reversal. 

As such, gold could see more pronounced chart-driven selling in the short-term. The immediate support is located at $1,848 (Sept. 28 low). Alternatively, a close above Wednesday's high of $1,910 would neutralize the bearish setup. 

Daily chart

Trend: Bearish

Technical levels

AUD/USD

Overview
Today last price 0.7067
Today Daily Change 0.0022
Today Daily Change % 0.31
Today daily open 0.7045
 
Trends
Daily SMA20 0.7133
Daily SMA50 0.7192
Daily SMA100 0.711
Daily SMA200 0.6798
 
Levels
Previous Daily High 0.7158
Previous Daily Low 0.7038
Previous Weekly High 0.7159
Previous Weekly Low 0.702
Previous Monthly High 0.7414
Previous Monthly Low 0.7004
Daily Fibonacci 38.2% 0.7084
Daily Fibonacci 61.8% 0.7112
Daily Pivot Point S1 0.7002
Daily Pivot Point S2 0.696
Daily Pivot Point S3 0.6882
Daily Pivot Point R1 0.7123
Daily Pivot Point R2 0.7201
Daily Pivot Point R3 0.7243

 

 

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