Gold technical analysis: Thursday's bearish outside day makes today's close pivotal

Gold created a bearish outside day on Thursday, an early warning of bearish reversal.
Acceptance below Thursday's low of $1,520 is needed to confirm the trend change.

Omkar Godbole FXStreet Contributor

Gold is currently trading at $1,526 per Oz, having hit a low of $1,522 earlier today.

The yellow metal hit a high and low of $1,550 and $1,520, respectively, on Thursday and ended the day with 0.77% losses, engulfing the price action seen in the preceding two trading days.

Essentially, Gold created a bearish outside day candle on Thursday, which is widely considered a sign of bullish-to-bearish trend change.

The trend reversal, however, would be confirmed if prices find acceptance below Thursday's low of $1,520. So, today's close is pivotal.

A break below $1,520, if confirmed, would open the doors to $1,492 (Aug. 22 low) and $1,480 (Aug. 13 low).

Daily chart

Trend: Bearish below $1,520

Pivot points

1. R3 1575.1
2. R2 1562.65
3. R1 1545.1
PP 1532.65
1. S1 1515.1
2. S2 1502.65
3. S3 1485.1

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

Japanese Yen weakens to two-year lows, targets 162.00

USD/JPY extends its advance well north of the 161.00 barrier on Thursday, always on the back of the continuation of the US Dollar's post-Fed rebound and despite warnings from the BoJ of a potential intervention at any time. Next on the upside for spot comes the July 2024 peak in levels just shy of 162.00 the figure.

AUD/USD trims gains, challenges 0.7000

AUD/USD now alternates gains with losses just above the key 0.7000 level ahead of the opening bell in Asia. The pair clinches its third consecutive daily retracement, always on the back of the persistent move higher in the Greenback, particularly following the Fed’s hawkish hold on Wednesday.

Gold drops to daily lows near $4,200

Gold struggles to attract buyers on Thursday, trading closer to the $4,200 mark per troy ounce. The yellow metal adds to Wednesday’s pullback and slips back to multi-day lows in response to the stronger US Dollar following the Fed’s hawkish hold on Wednesday.

XRP vulnerable below key EMA resistance levels

Ripple (XRP) ticks down below $1.20 with short-term support at $1.16 intact at the time of writing on Thursday. An early-week rally was rejected at $1.28, weighing on sentiment as traders broadly de-risked.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.

The next big AI trade may not be about chips or software

Artificial intelligence has already created some of the biggest winners in modern market history. Chipmakers have surged, data centre construction is booming, and electricity demand forecasts are changing globally.