Gold Price Analysis: XAU/USD recovers from 6-week low but bias remains bearish

Gold charts mild recovery after Monday's 4.56% crash.
Risks remain skewed to the downside with prices trading well below Monday's high.

Omkar Godbole FXStreet Contributor

Gold is currently trading near $1,877 per ounce, representing a 0.79% gain on the day, having hit a low of $1,850 during the overnight trade. That level was last seen on Sept. 28.

While prices have bounced from six-week lows, Monday's bearish engulfing candle is still valid. The safe-haven metal fell by 4.56% on Monday to register its biggest single-day decline since Aug. 11. The sharp slide came after the US pharma giant Pfizer announced positive results of coronavirus vaccine, boosting risk appetite. Besides, the sell-off engulfed or erased gains in the preceding six trading days.

The immediate bias will remain bearish while prices are held below Monday's high of $1,965. On the downside, the Sept. 28 low of $1,848 is key support, which, if breached, would expose the 200-day simple moving average (SMA) at $1,781.

Daily chart

Trend: Bearish

Technical levels

XAU/USD

Overview
Today last price	1876.56
Today Daily Change	10.92
Today Daily Change %	0.59
Today daily open	1865.64

Trends
Daily SMA20	1902.5
Daily SMA50	1911.69
Daily SMA100	1900.34
Daily SMA200	1780.11

Levels
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

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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