- Gold is staging a rebound following Monday's slump.
- XAU/USD stays below a cluster of moving averages.
- A daily close below $1,850 could cause the outlook to turn bearish.
After climbing to its highest level since mid-September at $1,965 on Monday, the XAU/USD pair made a sharp U-turn and suffered its largest daily percentage decline since early August. The pair closed at $1,861 and lost 4.58% but started to erase its losses on Tuesday. As of writing, XAU/USD was up 1.2% on the day at $1,884.
Gold technical outlook
Despite Tuesday's rebound, XAU/USD continues to trade below the 20-day, 50-day and 100-day SMAs, which are currently located around $1,900 psychological level. Additionally, the Fibonacci 50% retracement of the June-August uptrend is reinforcing this resistance area. Meanwhile, the Relative Strength Index (RSI) indicator on the daily chart stays below 50, suggesting that the pair is making a technical correction. Only a decisive break above $1,900 could attract more buyers and help XAU/USD shake off the bearish pressure.
On the other hand, the Fibonacci 61.8% retracement of the same trend seems to have formed important support at $1,850. If price makes a daily close below $1,850, it could extend its slide toward $1,815 (former resistance).
Gold daily chart
Additional levels to watch for
|Today last price||1883.46|
|Today Daily Change||17.82|
|Today Daily Change %||0.96|
|Today daily open||1865.64|
|Previous Daily High||1965.58|
|Previous Daily Low||1850.56|
|Previous Weekly High||1960.4|
|Previous Weekly Low||1873.52|
|Previous Monthly High||1933.3|
|Previous Monthly Low||1860|
|Daily Fibonacci 38.2%||1894.5|
|Daily Fibonacci 61.8%||1921.64|
|Daily Pivot Point S1||1822.27|
|Daily Pivot Point S2||1778.91|
|Daily Pivot Point S3||1707.25|
|Daily Pivot Point R1||1937.29|
|Daily Pivot Point R2||2008.95|
|Daily Pivot Point R3||2052.31|
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