Gold Price Analysis: XAU/USD drops in Asia, confirming rising wedge breakdown

Gold's hourly chart shows a bearish reversal pattern.
The breakdown has exposed the recent low of $1,948.

Omkar Godbole FXStreet Contributor

Gold is currently trading at $1,893 per ounce, representing a 0.65% drop on the day.

The decline has confirmed a rising wedge breakdown on the hourly chart. The bearish reversal pattern indicates that the recovery rally from the Sept. 28 low of $1,948 has ended, and the sell-off from the Sept. 16 high of $1,973 has resumed.

As such, the yellow metal could re-test $1,948. On the way lower, the higher low of $1,880 created on the hourly chart on Sept. 30 could offer support.

The bearish bias would be invalidated if prices find acceptance above Thursday's high of $1,912.

Hourly chart

Trend: Bearish

Technical levels

XAU/USD

Overview
Today last price	1893.24
Today Daily Change	-12.54
Today Daily Change %	-0.66
Today daily open	1905.78

Trends
Daily SMA20	1918.4
Daily SMA50	1945.62
Daily SMA100	1852.65
Daily SMA200	1732.88

Levels
Previous Daily High	1912.16
Previous Daily Low	1884.72
Previous Weekly High	1955.66
Previous Weekly Low	1848.84
Previous Monthly High	1992.42
Previous Monthly Low	1848.82
Daily Fibonacci 38.2%	1901.68
Daily Fibonacci 61.8%	1895.2
Daily Pivot Point S1	1889.61
Daily Pivot Point S2	1873.45
Daily Pivot Point S3	1862.17
Daily Pivot Point R1	1917.05
Daily Pivot Point R2	1928.33
Daily Pivot Point R3	1944.49

Author

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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