Gold Price Analysis: XAU/USD risks ending 3-day winning trend


  • Gold's hourly chart shows a bearish divergence of RSI. 
  • The metal could snap its three-day winning streak. 

Gold gained over 0.5% to $1,840 per ounce on Thursday, confirming a three-day winning streak and erasing more than 505 of the previous week's decline from $14,869 to $1,774. 

However, the recovery rally could run out of steam, as the hourly chart has violated the trendline rising from recent lows. Further, the hourly chart Relative Strength Index has created lower highs, contradicting higher highs on the price chart. The bearish divergence indicates the bounce from the previous week's low has run out of steam. 

The hourly chart shows immediate support is located at $1,823. A violation there would expose the 5-day Simple Moving Average at $1,819. On the higher side, resistance is seen at $1,850. The metal is currently trading at $1,838 per ounce. 

Hourly chart

Trend: Bearish

Technical levels

XAU/USD

Overview
Today last price 1838.32
Today Daily Change -3.94
Today Daily Change % -0.21
Today daily open 1842.26
 
Trends
Daily SMA20 1850.33
Daily SMA50 1879.89
Daily SMA100 1910.72
Daily SMA200 1802.66
 
Levels
Previous Daily High 1844.02
Previous Daily Low 1823.77
Previous Weekly High 1876.14
Previous Weekly Low 1774.4
Previous Monthly High 1965.58
Previous Monthly Low 1764.6
Daily Fibonacci 38.2% 1836.28
Daily Fibonacci 61.8% 1831.51
Daily Pivot Point S1 1829.35
Daily Pivot Point S2 1816.43
Daily Pivot Point S3 1809.1
Daily Pivot Point R1 1849.6
Daily Pivot Point R2 1856.93
Daily Pivot Point R3 1869.85

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

GBP/USD retreats from new highs amid dollar strength

GBP/USD has fallen off the peak of 1.3719, the highest since 2018, amid fresh dollar strength. Optimism about the UK's vaccine campaign and lower cases boosted sterling earlier. The greenback awaiting Biden's first moves as President. 

GBP/USD News

EUR/USD falls toward 1.21 ahead of Biden´s inauguration

EUR/USD has been descending toward 1.21. President-elect Biden is inaugurated later in the day and hopes of stimulus are high after Treasury Secretary nominee Yellen's testimony. 

EUR/USD News

Gold: Bulls recapture 200-DMA ahead of Biden's inauguration

Gold prices are attempting to correct higher above 200-DMA. The metal cheers rising US inflation expectations amid hopes of a massive stimulus package under the incoming Biden administration. 

Gold news

Bitcoin Price Prediction: Shaking a tree always makes the ripe fruit fall

BTC price is moving away from the historical high and seeks support at the 23.6% level of the Fibonacci retracement system from the entire previous rally.

Read more

US Dollar Index: Upside target remains at 91.00

DXY met buyers in the 90.30 region earlier on Wednesday and now resumes the upside to the 90.50/55 band.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures