XAUUSD: The Bears' Next Goal!
Updated
Technical analysis:
The price of gold has dropped below a descending resistance line that is three weeks old and is currently around $1,954. This is the third consecutive week where the price has fallen. Despite the Relative Strength Index (RSI) line performing poorly in the past few days, the bearish signals from the Moving Average Convergence and Divergence (MACD) indicator are attractive to gold buyers.
In addition to the MACD signals and the immediate resistance line, the convergence of the 21-day and 50-day moving averages, which is around $1,995, followed by the $2,000 round figure, are also positive indicators for XAU/USD to cross and convince buyers.
If the gold price remains above $2,000, it will draw attention to the previous monthly high of around $2,050 and the recently flashed record top surrounding $2,080. However, if the price falls below the resistance-turned-support line of around $1,954, the bears won't have an easy time selling, as an upward-sloping trend line from November 2022, close to $1,930, can challenge them before giving them control.
The price of gold has dropped below a descending resistance line that is three weeks old and is currently around $1,954. This is the third consecutive week where the price has fallen. Despite the Relative Strength Index (RSI) line performing poorly in the past few days, the bearish signals from the Moving Average Convergence and Divergence (MACD) indicator are attractive to gold buyers.
In addition to the MACD signals and the immediate resistance line, the convergence of the 21-day and 50-day moving averages, which is around $1,995, followed by the $2,000 round figure, are also positive indicators for XAU/USD to cross and convince buyers.
If the gold price remains above $2,000, it will draw attention to the previous monthly high of around $2,050 and the recently flashed record top surrounding $2,080. However, if the price falls below the resistance-turned-support line of around $1,954, the bears won't have an easy time selling, as an upward-sloping trend line from November 2022, close to $1,930, can challenge them before giving them control.
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Gold bulls prod $1,951 hurdle on mixed start of US NFP weekGold Price picks up bids to consolidate the monthly losses, the first in three, amid mixed concerns surrounding the US debt limit extension. Adding strength to the corrective bounce could be the holidays in the major markets including the US, as well as anxiety ahead of this week’s US NFP.
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