Gold technical analysis: Below $1,500, risks breaching three-month rising trendline


  • Gold produced a candle with a long upper shadow on Thursday, reinforcing the short-term bearish bias.
  • The yellow metal looks set to breach the support of the trendline rising from May 30 lows.

Gold is currently trading at $1,496 per Oz, representing 0.12% losses on the day, having hit a high of $1,501 in early Asia.

On Thursday, the yellow metal clocked a high of $1,524 before closing largely unchanged at $1,498. Essentially, Gold created a daily candle with a big upper shadow (sell on rise mentality), reinforcing the bearish view put forward by Sept. 6's double top breakdown.

So, a deeper drop to levels below $1,494 – the support of the trendline connecting May 30 and Aug. 1 highs – could be in the offing.

Supporting the bearish case is the below-50 reading on the relative strength index (RSI) and the risk-on sentiment in the financial markets. As of writing, the futures on the S&P 500 are reporting 0.10% gains. The index rallied by 0.29% on Thursday, courtesy of fading trade tensions and European Central Bank's (ECB) monetary easing.

The outlook would turn bullish if prices close today above $1,524 (Thursday's high), although that looks unlikely.

Daily chart

Trend: Bearish

Technical levels

XAU/USD

Overview
Today last price 1496.8
Today Daily Change -2.20
Today Daily Change % -0.15
Today daily open 1499
 
Trends
Daily SMA20 1516.89
Daily SMA50 1472.68
Daily SMA100 1398.93
Daily SMA200 1345.32
Levels
Previous Daily High 1523.3
Previous Daily Low 1489.25
Previous Weekly High 1557.03
Previous Weekly Low 1502.95
Previous Monthly High 1554.63
Previous Monthly Low 1400.9
Daily Fibonacci 38.2% 1510.29
Daily Fibonacci 61.8% 1502.26
Daily Pivot Point S1 1484.4
Daily Pivot Point S2 1469.8
Daily Pivot Point S3 1450.35
Daily Pivot Point R1 1518.45
Daily Pivot Point R2 1537.9
Daily Pivot Point R3 1552.5

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD struggling to hold onto 1.10 as USD gains ground

EUR/USD is trading close to 1.10, as the US dollar gradually advances. Two White House advisers expressed contradicting accounts of US-Sino trade talks, causing confusion. Germany refrained from adding fiscal stimulus.

EUR/USD News

GBP/USD trades around 1.25 as EU pours cold water on Brexit hopes

GBP/USD is trading around 1.25, off the two-month highs of 1.2582 as EU officials cast doubts about the seriousness of the new UK proposals on Brexit. 

GBP/USD News

USD/JPY drops to one-week lows on trade war headlines

The USD/JPY fell during the American session following reports that the Montana Farm Bureau said China's delegation has canceled a planned trip to view US agriculture.

USD/JPY News

Gold climbs further beyond $1500 mark, lacks follow-through

Gold edged higher for the second consecutive session on Friday, albeit remained well within a familiar trading range held over the past two weeks or so.

Gold News

Top 3 price prediction Bitcoin, Ripple, Ethereum: Ethereum points to the Moon as Bitcoin takes a break

ETH/USD exceeds $220 and is bidding to lead the market. Bitcoin sets a bear trap and recaptures $10,000. XRP stalls between technical levels and fails to consolidate $0.30.

Read more

Forex MAJORS

Cryptocurrencies

Signatures