The price of gold is currently unable to surpass the critical resistance level at $1,926, which used to be a support level. This resistance level coincides with both the 21-day and 200-day moving averages (DMA). Despite managing to break through this resistance on Friday and reaching the bearish 50 DMA at $1,929, gold was unable to sustain this breakthrough due to renewed selling pressure.
Additionally, the 14-day Relative Strength Index (RSI) has returned to negative territory below the 50 level. This suggests that there is still a stronger downward momentum in play.
If gold continues its decline, it could find immediate support at last week's low of $1,914. A further drop would open up possibilities for prices falling towards the round figure of $1,910. The next significant demand area can be found around $1,900.
On the other hand, for a bullish scenario where gold breaks above both the confluence of the 21 DMA and 200 DMA at $1,926 and challenges once again the bearish trend represented by the 50 DMA at $1,929; buyers will then set their sights on overcoming another obstacle in form of a downward-sloping trendline represented bythe100DMA situated around$1941
Additionally, the 14-day Relative Strength Index (RSI) has returned to negative territory below the 50 level. This suggests that there is still a stronger downward momentum in play.
If gold continues its decline, it could find immediate support at last week's low of $1,914. A further drop would open up possibilities for prices falling towards the round figure of $1,910. The next significant demand area can be found around $1,900.
On the other hand, for a bullish scenario where gold breaks above both the confluence of the 21 DMA and 200 DMA at $1,926 and challenges once again the bearish trend represented by the 50 DMA at $1,929; buyers will then set their sights on overcoming another obstacle in form of a downward-sloping trendline represented bythe100DMA situated around$1941
Comment:
Investors have a basis to expect the price of gold to increase, because gold is reacting in a positive direction when the US Federal Reserve (Fed) did not raise interest rates on September 20 due to economic risks. The US economy may decline.
Comment:
🕯 BUY GOLD | 1912 - 1914
🔴 SL: 1908
🟢 TP1: 1920
🟢 TP2: 1925
🔴 SL: 1908
🟢 TP1: 1920
🟢 TP2: 1925
Trade active:
Close 1/2 + 35pips ✔️✔️✔️ Move SL to Entry 😮
