Gold technical analysis: Bearish bias strengthens with drop to one-month lows

Gold fell to a one-month low of $1,486 soon before press time.
The slide to four-week lows has bolstered the bearish technical setup and exposed the 50-day MA support at $1,469.

Omkar Godbole FXStreet Contributor

Gold is currently trading at $1,488 per Oz, having dropped to $1,486 soon before press time. That was the lowest level since Aug. 13.

The slide to one-month low has strengthened the bearish bias put forward by the daily chart double top breakdown confirmed on Thursday and the weekly chart bearish engulfing pattern.

Also, the relative strength index (RSI) is now reporting bearish conditions with a below-50 print. The indicator has turned bearish for the first time since May.

The 5- and 10-day moving averages (MAs) are also trending south, indicating a bearish setup. All-in-all, the yellow metal risks falling to the 50-day MA, currently at $1,469.

A minor bounce may precede a drop to $1,469, as the intraday charts are reporting oversold conditions.

Daily chart

Trend: Bearish

Technical levels

XAU/USD

Overview
Today last price	1488
Today Daily Change	-11.15
Today Daily Change %	-0.74
Today daily open	1498.98

Trends
Daily SMA20	1519.85
Daily SMA50	1468.14
Daily SMA100	1392.37
Daily SMA200	1341.45

Levels
Previous Daily High	1515.22
Previous Daily Low	1497.86
Previous Weekly High	1557.03
Previous Weekly Low	1502.95
Previous Monthly High	1554.63
Previous Monthly Low	1400.9
Daily Fibonacci 38.2%	1504.49
Daily Fibonacci 61.8%	1508.59
Daily Pivot Point S1	1492.81
Daily Pivot Point S2	1486.65
Daily Pivot Point S3	1475.45
Daily Pivot Point R1	1510.18
Daily Pivot Point R2	1521.38
Daily Pivot Point R3	1527.54

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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