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