Gold Price Analysis: XAU/USD holds rising channel support

Gold is defending the lower end of a multi-week rising channel.
A breakdown looks likely with US yields on the rise.

Omkar Godbole FXStreet Contributor

Gold is currently trading just above $1,902 – the lower end of the falling channel represented by trendlines connecting Sept. 28 and Oct. 14 lows and Oct. 2 and Oct. 12 highs.

A break below $1,902 would confirm a rising channel breakdown. That would imply a resumption of the sell-off from the Sept.16 high of $1,973 and open the doors for a re-test of September lows near $1,850.

That possibility cannot be ruled out as treasury yields are rising, making the zero-yielding yellow metal look unattractive.

On the higher side, the Oct. 21 high of $1,931 is the level to beat for the bulls. That would expose the upper end of the rising channel, currently at $1,958.

Daily chart

Trend: Neutral

Technical levels

XAU/USD

Overview
Today last price	1905
Today Daily Change	1.80
Today Daily Change %	0.09
Today daily open	1904.12

Trends
Daily SMA20	1899.88
Daily SMA50	1923.96
Daily SMA100	1879.22
Daily SMA200	1760.15

Levels
Previous Daily High	1926.06
Previous Daily Low	1894.48
Previous Weekly High	1933.3
Previous Weekly Low	1882.46
Previous Monthly High	1992.42
Previous Monthly Low	1848.82
Daily Fibonacci 38.2%	1906.54
Daily Fibonacci 61.8%	1914
Daily Pivot Point S1	1890.38
Daily Pivot Point S2	1876.64
Daily Pivot Point S3	1858.8
Daily Pivot Point R1	1921.96
Daily Pivot Point R2	1939.8
Daily Pivot Point R3	1953.54

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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