Yesterday, the gold price touched 1900 and in the past, the price had reacted very strongly in this area.
Gold is hitting its downside target as selling momentum dries up.
On the one-hour chart, gold prices hold below the Moving Averages (EMA) of 34 and 89. Meanwhile, the Relative Strength Index (RSI) is in the bearish zone below 50, triggering bearish momentum for gold prices.
Gold is hitting its downside target as selling momentum dries up.
On the one-hour chart, gold prices hold below the Moving Averages (EMA) of 34 and 89. Meanwhile, the Relative Strength Index (RSI) is in the bearish zone below 50, triggering bearish momentum for gold prices.
Comment:
The price of gold (XAU/USD) is currently on a downward trend following last week's failure near the important 200-day Simple Moving Average (SMA) and continued losses on the third consecutive day on Wednesday. This also marks the sixth day of negative movement in the past seven days, pushing the commodity price below the $1,900 mark, reaching its lowest level since August 22 before entering the European trading session.
Comment:
Gold price now seems to have found acceptance below the $1,900 mark, which, along with bearish oscillators on the daily chart, suggests that the path of least resistance is to the downside. Hence, some follow-through weakness towards retesting the August monthly swing low, around the $1,885-1,884 region, looks like a distinct possibility. Some follow-through selling will be seen as a fresh trigger for bearish traders and set the stage for an extension of the retracement slide from an all-time high touched in May.
