Gold Price fades bounce off an upward-sloping support line from late February by retreating from the 50-DMA hurdle, around $1,945 by the press time. Adding strength to the downside bias are the bearish MACD signals and a downward-sloping RSI (14), not oversold. With this, the XAUUSD is likely to break the stated support line, around $1,925 by the press time. Following that, a quick fall toward the $1,900 round figure can’t be ruled out. However, a six-month-long horizontal support zone around $1,890 and the 78.6% Fibonacci retracement of February-May upside, near $1,860 may test the metal’s further downside before challenging the yearly low marked in March around $1,804.
On the contrary, a daily closing beyond the 50-DMA hurdle of around $1,945 may allow the Gold buyers to aim for the 38.2% Fibonacci retracement level of around $1,967. However, an area comprising multiple levels marked since May 19, close to $1,985, will challenge the XAUUSD bulls afterward. In a case where the bullion price rally crosses the $1,985 resistance, the $2,000 round figure may give a final fight to the optimists before giving them control.
Overall, the Gold Price remains on the back foot but a clear downside break of $1,925 becomes necessary for the bears to take control.
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.