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Gold Technical Analysis: runs into 78.6% Fib of $1,321, 4H RSI and MACD diverge

Gold is struggling to find acceptance above $1,321, which is the 78.6 percent Fibonacci retracement of the sell-off from $1,365 to $1,160 and could see a minor pullback as the short duration indicators are beginning to diverge in favor of the bears. 

4-hour chart

As seen above, the previous 4-hour candle clocked a high of $1,323 - a level last seen in May 2018 - but failed to close above the 78.6 percent Fibonacci retracement level of $1,321. 

Further, the current 4-hour candle is reporting losses below that Fib hurdle. 

Notably, the relative strength index (RSI) has produced a lower high in response to a higher high on price. The moving average convergence divergence (MACD) bars continue to lose altitude, signaling weakening bullish pressures. 

Therefore, a minor pullback, possibly to levels below $1,300, could be seen before Friday's NY close. 

Trend: minor pullback likely

XAU/USD

Overview:
    Today Last Price: 1318.99
    Today Daily change: 0.13 pips
    Today Daily change %: 0.01%
    Today Daily Open: 1318.86
Trends:
    Daily SMA20: 1291.36
    Daily SMA50: 1265.02
    Daily SMA100: 1240.92
    Daily SMA200: 1229.3
Levels:
    Previous Daily High: 1323.14
    Previous Daily Low: 1309.46
    Previous Weekly High: 1300.28
    Previous Weekly Low: 1275.9
    Previous Monthly High: 1284.7
    Previous Monthly Low: 1221.39
    Daily Fibonacci 38.2%: 1317.91
    Daily Fibonacci 61.8%: 1314.69
    Daily Pivot Point S1: 1311.17
    Daily Pivot Point S2: 1303.47
    Daily Pivot Point S3: 1297.49
    Daily Pivot Point R1: 1324.85
    Daily Pivot Point R2: 1330.84
    Daily Pivot Point R3: 1338.53

Author

Omkar Godbole

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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