Gold Price Analysis: XAU/USD drops the most in two weeks inside monthly triangle


  • Gold stands on the slippery ground after reversing from one-month-old triangle.
  • Bearish MACD, a pullback from triangle resistance favor sellers.
  • Bulls can attack the $2,000 threshold on the triangle’s upside break.

Gold prices lose 1.0% while declining to $1,939.70, intraday low of $1,97.80, during the pre-European session on Thursday. The yellow metal’s declines marks its U-turn from the upper line of a short-term symmetrical triangle formation established since August 12.

With the consolidation in gold prices joining bearish MACD, sellers cheer a downside break of 1-day EMA, which in turn directs the quote towards the triangle’s support, at $1,920.80 now.

It should, however, be noted that the bullion’s further weakness will depend upon how long it stays below the 50-day EMA level of $1,915.81.

On the upside, gold buyers’ ability to regain 21-day EMA support, currently around $1,945.85, will direct the moves towards the triangle’s resistance line near $1,968.

In a case where the bulls manage to cross $1,968 on a daily closing basis, the monthly top around $1,992 and the $2,000 psychological magnet will be their next choice.

Gold daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price 1938.29
Today Daily Change -20.71
Today Daily Change % -1.06%
Today daily open 1959
 
Trends
Daily SMA20 1945.01
Daily SMA50 1929.24
Daily SMA100 1831.41
Daily SMA200 1709.96
 
Levels
Previous Daily High 1973.64
Previous Daily Low 1949.93
Previous Weekly High 1966.54
Previous Weekly Low 1906.62
Previous Monthly High 2075.32
Previous Monthly Low 1863.24
Daily Fibonacci 38.2% 1964.58
Daily Fibonacci 61.8% 1958.99
Daily Pivot Point S1 1948.07
Daily Pivot Point S2 1937.15
Daily Pivot Point S3 1924.36
Daily Pivot Point R1 1971.78
Daily Pivot Point R2 1984.57
Daily Pivot Point R3 1995.49

 

 

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