XAUUSD: GOLD Prediction 16 OCT
The Gold price summary has once again regained control over the significant short-term descending 21-Daily Moving Average (DMA) at $1,878. However, it was unable to close above this level on a daily basis.
The 14-day Relative Strength Index (RSI) indicator is currently situated just below the midpoint. This suggests that any attempts by the Gold price to move higher are likely to be temporary.
If the Gold price fails to achieve a weekly closing above the 21 DMA at $1,878, it could strengthen bearish sentiment and lead to a new downward movement towards Wednesday's low of $1,859.
The next important support level can be found at the psychological mark of $1,850.
On the upside, if there is a sustained breakthrough of the 21 DMA barrier, this would confirm a bullish reversal from multi-month lows. In such case, Gold buyers will aim for the threshold of $1,900. It should be noted that this level coincides with mildly bearish resistance from the 50 DMA.
Moving even higher up in price levels may pose challenges as there is strong resistance around $1,925 where both the 100 and 200 DMAs are located.
The 14-day Relative Strength Index (RSI) indicator is currently situated just below the midpoint. This suggests that any attempts by the Gold price to move higher are likely to be temporary.
If the Gold price fails to achieve a weekly closing above the 21 DMA at $1,878, it could strengthen bearish sentiment and lead to a new downward movement towards Wednesday's low of $1,859.
The next important support level can be found at the psychological mark of $1,850.
On the upside, if there is a sustained breakthrough of the 21 DMA barrier, this would confirm a bullish reversal from multi-month lows. In such case, Gold buyers will aim for the threshold of $1,900. It should be noted that this level coincides with mildly bearish resistance from the 50 DMA.
Moving even higher up in price levels may pose challenges as there is strong resistance around $1,925 where both the 100 and 200 DMAs are located.
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