Gold Technical Analysis: Near-term set-up remains tilted in favour of bearish traders


  • The overnight slide below $1475 confluence support confirmed a bearish breakdown.
  • Bears now await a sustained weakness below the $1460 region (Oct. monthly lows).

Gold failed to capitalize on its early attempted recovery move and has now slipped back to the lower end of its daily trading range, well within the striking distance of over one-month lows set in the previous session.
 
The overnight slump dragged the commodity below the $1475 confluence support – comprising of 100-day SMA and the lower band of a one-month-old trading range – and confirmed a near-term bearish breakdown.
 
However, slightly oversold conditions helped the commodity to find some support near October monthly swing lows, around the $1460 region, which coincides with 61.8% Fibonacci level of the $1400-$1557 positive move.
 
Meanwhile, technical indicators on the daily chart maintained their bearish bias and support prospects for an extension of the downfall, though bears are likely to wait for a sustained weakness below the $1460 support area.
 
Below the mentioned support, the commodity is likely to accelerate the slide further towards a previous strong horizontal resistance near the $1436 horizontal level with some intermediate support near the $1447-45 region.
 
On the flip side, the overnight confluence support breakpoint, around the $1475 region, now seems to act as immediate strong resistance and any subsequent recovery is likely to remain capped near the $1480 horizontal level.

Gold daily chart

fxsoriginal

XAU/USD

Overview
Today last price 1467.5
Today Daily Change -0.49
Today Daily Change % -0.03
Today daily open 1467.99
 
Trends
Daily SMA20 1493.18
Daily SMA50 1500.76
Daily SMA100 1476.26
Daily SMA200 1389.78
 
Levels
Previous Daily High 1492.2
Previous Daily Low 1461.14
Previous Weekly High 1515.38
Previous Weekly Low 1481.1
Previous Monthly High 1519.04
Previous Monthly Low 1455.5
Daily Fibonacci 38.2% 1473
Daily Fibonacci 61.8% 1480.33
Daily Pivot Point S1 1455.35
Daily Pivot Point S2 1442.71
Daily Pivot Point S3 1424.28
Daily Pivot Point R1 1486.41
Daily Pivot Point R2 1504.84
Daily Pivot Point R3 1517.48

 

 

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: Bearish hammer on D1 ahead of ECB minutes

EUR/USD is looking heavy ahead of the minutes of the ECB Oct policy meeting, which are expected to show the members stand divided on which course to take. Waning trade optimism will likely keep the EUR on the defensive.

EUR/USD News

GBP/USD turns positive above 21-DMA as challenges to Tories recede

With the Tory supporters paying little heed to the previous day’s ITV debate, not to forget a surprise turnaround in the opposition Labour party loyalists, GBP/USD trades  better bid above 1.2900 while heading into the London open on Thu.

GBP/USD News

USD/JPY bounces-off 50-DMA but lacks follow-through

USD/JPY has bounced up from the 50-day MA support of 108.28. China's Vice Premier Liu He is cautiously optimistic about the prospects of the US-China trade deal. Related markets, however, are not buying Liu He's optimism, keeping the recovery in check. 

USD/JPY News

Gold: Doji on D1 questions bulls amid mixed trade sentiment

Although the United States’ (US) support for Hong Kong protesters favors the broad risk-off momentum, the mixed response from Chinese diplomats and a bearish candlestick formation question Gold buyers around $1,473 during early Thursday.

Gold News

Hong Kong now a feature in trade negotiations?

The US Senate and House have both passed the Hong Kong Human Rights and Democracy Bill, so now it heads to the desk of US President Trump to either sign or veto it. Sources suggest that the President will sign it into law.

Read more

Forex MAJORS

Cryptocurrencies

Signatures