- Gold lacked any firm directional bias and was seen oscillating in a range around $1865 region.
- This week’s sustained breakthrough an upward sloping trend-channel favours bearish traders.
- Attempted recovery might be seen as a selling opportunity and remain capped near $1900 mark.
Gold extended its sideways consolidative price action through the mid-European session and remained confined in a narrow trading band, around the $1865 region.
The precious metal's inability to gain any meaningful traction comes on the back of this week's break below a short-term ascending trend-channel, which constituted the formation of a bearish flag pattern. Meanwhile, technical indicators on the daily chart maintained their bearish bias and are still far from being in the oversold territory, adding credence to the negative set-up.
That said, bearish traders might still wait for some follow-through selling below the $1850-48 strong horizontal support before positioning for any further depreciating move. The XAU/USD might then accelerate the slide towards testing the $1820-15 congestion zone before eventually dropping to test the very important 200-day SMA support – levels just below the $1800 round-figure.
On the flip side, the mentioned trend-channel support breakpoint, around the $1877-78 region, which now coincides with 200-hour SMA, should now act as a stiff resistance. Any subsequent move up might be seen as an opportunity to initiate fresh bearish positions and runs the risk of fizzling out rather quickly. This, in turn, should cap the upside for the XAU/USD near the $1900 mark.
XAU/USD 1-hourly chart
-637414739719824632.png)
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
GBP/USD remains heavy below 1.2300 after BoE hits the pause button
GBP/USD remains under heavy selling pressure below 1.2300 in the European session on Thursday. The BoE unexpectedly held rates steady at 5.25% after its September meeting. Odds of a November hike fall amid the UK's soft inflation and grim economic outlook.
EUR/USD stays depressed near 1.0650 on sustained US Dollar strength
EUR/USD is consolidating losses near 1.0650 in the European trading hours on Thursday. The Fed kept rates unchanged but indicated one more rate hike before the year-end. US yields sit at multi-year highs, underpinning the US Dollar ahead of data.
Gold falls to $1,920 ahead of US data
Gold price is holding lower ground near $1,920 in the European session on Thursday. Investors seem to shift their focus on upcoming US data after the US Federal Reserve's hawkish hold on Wednesday triggered a fresh US Dollar rally.
Tether increased its secured loans in Q2 despite commitment to reduce lending
Tether Holdings has resumed the lending of its stablecoins in the form of secured loans to clients after announcing that it is set to wind down this practice less than a year ago.
Fed governors see far less room to cut rates next year
US yields at all tenors had settled near/mostly just below cycle peak levels going into the Fed decision. The Fed as telegraphed kept its policy rate unchanged at 5.25%/5.50%.