Gold Price Analysis: XAU/USD down 0.40% in Asia, $1,980 is key support

Gold has pulled back by $10 from session highs.
The 4-hour chart is beginning to lean bearish.

Omkar Godbole FXStreet Contributor

Gold is trading near $1,993 at press time, representing a 0.4% decline on the day. The yellow metal faced rejection at $2,015 on Tuesday.

The 4-hour chart relative strength index has dived out of an ascending/bullish trendline. As such, the metal risks extending losses to $1,980. That level is currently housing the trendline rising from Aug. 12 and Aug. 16 lows.

A break below that trendline support would imply an end of the recovery from the Aug. 12 low of $1,863 and could cause some buyers to exit the market, leading to a deeper decline to $1,950. A move above $2,015 is needed to restore the immediate bullish view.

XAU/USD 4-hour chart

Trend: Bearish below $1,980

Technical levels

XAU/USD

Overview
Today last price	1993.92
Today Daily Change	-8.58
Today Daily Change %	-0.43
Today daily open	2002.5

Trends
Daily SMA20	1967.02
Daily SMA50	1851.18
Daily SMA100	1775.97
Daily SMA200	1659.69

Levels
Previous Daily High	2015.65
Previous Daily Low	1976.1
Previous Weekly High	2049.96
Previous Weekly Low	1863.24
Previous Monthly High	1984.8
Previous Monthly Low	1757.7
Daily Fibonacci 38.2%	2000.54
Daily Fibonacci 61.8%	1991.21
Daily Pivot Point S1	1980.52
Daily Pivot Point S2	1958.53
Daily Pivot Point S3	1940.97
Daily Pivot Point R1	2020.07
Daily Pivot Point R2	2037.63
Daily Pivot Point R3	2059.62

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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