Gold Price Analysis: XAU/USD eyes 200-day SMA

Gold looks south, having breached support at $1,850.
The daily chart indicators favor a deeper drop to the 200-day SMA.

Omkar Godbole FXStreet Contributor

Having found acceptance under long-held support, gold now risks falling to the 200-day Simple Moving Average (SMA).

The yellow metal closed below $1,850 on Monday, violating the level, which acted as a strong floor multiple times since September.

The breakdown is backed by a below-50 or bearish reading on the 14-day Relative Strength Index (RSI) and a negative MACD histogram. The 5- and 10-day SMAs are trending south, indicating a bearish setup, and so is the bearish crossover of the 50- and 100-day SMAs.

As such, the long-term SMA of $1,796 could soon come into play. The yellow metal is currently trading at a four-month low of $1,824 per ounce, representing a 0.68% drop on the day.

Daily chart

Trend: Bearish

Technical levels

XAU/USD

Overview
Today last price	1824
Today Daily Change	-13.58
Today Daily Change %	-0.68
Today daily open	1836.12

Trends
Daily SMA20	1886.06
Daily SMA50	1897.46
Daily SMA100	1910.27
Daily SMA200	1795.22

Levels
Previous Daily High	1876.14
Previous Daily Low	1831.01
Previous Weekly High	1899.14
Previous Weekly Low	1852.8
Previous Monthly High	1933.3
Previous Monthly Low	1860
Daily Fibonacci 38.2%	1848.25
Daily Fibonacci 61.8%	1858.9
Daily Pivot Point S1	1819.37
Daily Pivot Point S2	1802.63
Daily Pivot Point S3	1774.24
Daily Pivot Point R1	1864.5
Daily Pivot Point R2	1892.89
Daily Pivot Point R3	1909.63

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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