Gold Price Analysis: XAU/USD looks south on triangle breakdown

Gold's 50-day SMA support at $1,908 stands exposed.
The daily chart shows a symmetrical triangle breakdown.

Omkar Godbole FXStreet Contributor

Gold fell by 0.18% on Monday, confirming a symmetrical triangle breakdown on the daily chart.

The pattern indicates the two-week-long price consolidation has ended, and the pullback from the record high of $2,075 reached on Aug. 7 has resumed.

As such, the yellow metal risks falling to the 50-day simple moving average support at $1,908 – the average last put to the test on June 18.

Supporting the bearish case is the below-50 reading on the 14-day relative strength index and the negative reading on the MACD histogram.

At press time, gold is trading at $1,926 per ounce, representing a 0.16% decline on the day.

Daily chart

Trend: Bearish

Technical levels

XAU/USD

Overview
Today last price	1926.01
Today Daily Change	-2.71
Today Daily Change %	-0.16
Today daily open	1928.72

Trends
Daily SMA20	1945.43
Daily SMA50	1906.38
Daily SMA100	1815.01
Daily SMA200	1693.18

Levels
Previous Daily High	1941.46
Previous Daily Low	1924.64
Previous Weekly High	1992.42
Previous Weekly Low	1916.42
Previous Monthly High	2075.32
Previous Monthly Low	1863.24
Daily Fibonacci 38.2%	1931.07
Daily Fibonacci 61.8%	1935.03
Daily Pivot Point S1	1921.75
Daily Pivot Point S2	1914.79
Daily Pivot Point S3	1904.93
Daily Pivot Point R1	1938.57
Daily Pivot Point R2	1948.43
Daily Pivot Point R3	1955.39

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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