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

 

 

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