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Gold Price Analysis: XAU/USD down 0.45%, but losses could be short-lived

  • Gold is nursing moderate losses at press time, having gained 1.27% on Weddnesday. 
  • Gold's daily chart shows a bullish candlestick arrangement. 

Gold is trading near $1,945 per ounce, representing a 0.45% decline on the day. The losses could be reversed during the day ahead as the daily chart is reporting a bullish reversal pattern. 

The metal first created a Doji candle on Tuesday, indicating indecision in the marketplace and then carved out a long-tailed bullish engulfing candle on Wednesday. 

In other words, the market has gone from being indecisive to bullish. 

As such, the hourly chart resistance at $1,962 could come into play. Acceptance above that level would open the doors for $2,000.

The bullish bias would be invalidated if prices settle below $ 1,903 – the low of the long-tailed positive engulfing candle created on Wednesday. A close below $1,903 will likely invite stronger selling pressure, possibly yielding a drop to $1,863 (Aug. 12 low). 

Daily chart

Trend: Bullish

Technical levels

XAU/USD

Overview
Today last price1944.94
Today Daily Change-9.24
Today Daily Change %-0.47
Today daily open1954.18
 
Trends
Daily SMA201971.76
Daily SMA501876.23
Daily SMA1001795.17
Daily SMA2001673.81
 
Levels
Previous Daily High1954.88
Previous Daily Low1902.76
Previous Weekly High2015.65
Previous Weekly Low1911.64
Previous Monthly High1984.8
Previous Monthly Low1757.7
Daily Fibonacci 38.2%1934.97
Daily Fibonacci 61.8%1922.67
Daily Pivot Point S11919.67
Daily Pivot Point S21885.15
Daily Pivot Point S31867.55
Daily Pivot Point R11971.79
Daily Pivot Point R21989.39
Daily Pivot Point R32023.91

Author

Omkar Godbole

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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