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.

EUR/USD onsolidates around mid-1.1800s as traders keenly await FOMC Minutes

The EUR/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.1800 neighborhood, or a one-and-a-half-week low, and consolidates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1800s, nearly unchanged for the day.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold bounces back toward $4,900, looks to FOMC Minutes

Gold is attempting a bounce from the $4,850 level, having touched a one-week low on Tuesday. Signs of progress in US–Iran talks dented demand for the traditional safe-haven bullion, weighing on Gold in early trades. However, rising bets for more Fed rate cuts keep the US Dollar bulls on the defensive and act as a tailwind for the non-yielding yellow metal. Traders now seem reluctant ahead of the FOMC Minutes, which would offer cues about the Fed's rate-cut path and provide some meaningful impetus.

DeFi could lift crypto market from current bear phase: Bitwise

Bitwise Chief Investment Officer Matt Hougan hinted that the decentralized finance sector could lead the crypto market out of the current bear phase, citing Aave Labs’ latest community proposal as a potential signal of good things to come.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.