Gold Price Analysis: XAU/USD could extend downward correction below $1,925

  • XAU/USD failed to make a decisive move in either direction this week.
  • $1,925 aligns as a critical support for gold.
  • The descending triangle on the daily chart points out to a bearish outlook.

The troy ounce of the precious metal fluctuated in a relatively tight range throughout the week and closed with a gain of $10 at $1,950. 

Gold technical outlook

$1,925, Fibonacci 23.6% retracement of the uptrend that started in late March and ended in early August, has been tested numerous times in the past few weeks and seems to be holding bears in check. However, the descending triangle, which is a bearish pattern, that can be seen on the daily chart is using that static support area as its bottom. Additionally, the 50-day SMA is staying relatively close to that level, confirming its significance. With a daily close below $1,925, XAU/USD could extend its slide toward $1,900(psychological level/ Aug. 26 low) and $1,860 (Aug. 12 low).

On the upside, the near-term outlook could turn bullish with a decisive break through $2,000 (psychological level). Ahead of that level, $1,975 (Sep. 16 high) could be seen as an interim resistance.

Gold chart (daily)


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

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD edges above 1.18 amid mixed US data, slim stimulus hopes

EUR/USD is trading above 1.30 after US Durable Goods Orders beat expectations but Consumer Confidence missed estimates. Hopes for a US stimulus deal are slim with a week left until the elections.


GBP/USD stabilizes above 1.30 amid Brexit and covid uncertainty

GBP/USD is hovering above the round 1.30 levels as rising UK COVID-19 cases, uncertainty about Brexit, and PM Johnson's political problems weigh on sterling. US data has been mixed.


XAU/USD pares early gains, turns flat near $1,900

For the third straight trading day on Tuesday, the XAU/USD pair is moving sideways above $1,900 as participants wait for the next significant catalyst. After climbing to a daily high of $1,910 earlier in the day, the pair lost its traction and was last seen trading virtually unchanged on the day at $1,902.

Gold News

Bitcoin breaks new yearly highs; the road to $15,000 is clear

Bitcoin breaks new yearly highs and hits $13,464. The road to $15,000 is clear as there are no major resistance levels above the current price.

Read more

WTI trims losses and moves near $39.00/bbl ahead of API

Following two consecutive daily pullbacks, prices of the West Texas Intermediate regain some buying interest and reach the $39.00 mark per barrel on turnaround Tuesday.

Oil News