Spot gold in $ terms withdrew last week, erasing -1.1% and trimming a large portion of the previous two-week winning streak that began from the weekly timeframe’s descending resistance-turned support taken from the high of $2,070. Leaving weekly resistance unchallenged at $1,969, further selling in this market in the medium term could see the yellow metal retest the spirit of the aforesaid descending support and maybe, with a little oomph, weekly support coming in at $1,823.
The weekly and daily timeframes are now exhibiting downtrends, according to price structure. With the 50-day simple moving average at $1,932 nearing the 200-day simple moving average at $1,918, we might also eventually observe what’s referred to as a Death Cross (the 50-day SMA crossing below the 200-day SMA), signalling that a longer-term bearish trend may be in the pipeline.
Price action on the daily timeframe ended the week testing the grip of the aforementioned 200-day SMA, joined by horizontal support from $1,919. Having seen the 50-day SMA circling just overhead and Friday concluding considerably off best levels, price crossing under the 200-day SMA this week would be viewed as a bearish trend reversal signal. And aside from the $1,884 low formed on 21 August, possibly offering a technical floor, the ground below $1,919 appears thin until the weekly timeframe’s support noted above at $1,823.
On the H1 timeframe, Friday retested resistance at $1,927 and has room to nudge lower in the short term to test support at $1,914. Ultimately, knowing that there’s room to move lower on the weekly timeframe, and daily support from $1,919 appears vulnerable (along with the 200-day SMA), short-term traders will likely be expecting the yellow metal to continue lower and test $1,914 on the H1. However, for additional sellers to commit this week, a H1 close under $1,914 is likely needed, potentially exposing $1,900 as the next downside objective.
The weekly and daily timeframes are now exhibiting downtrends, according to price structure. With the 50-day simple moving average at $1,932 nearing the 200-day simple moving average at $1,918, we might also eventually observe what’s referred to as a Death Cross (the 50-day SMA crossing below the 200-day SMA), signalling that a longer-term bearish trend may be in the pipeline.
Price action on the daily timeframe ended the week testing the grip of the aforementioned 200-day SMA, joined by horizontal support from $1,919. Having seen the 50-day SMA circling just overhead and Friday concluding considerably off best levels, price crossing under the 200-day SMA this week would be viewed as a bearish trend reversal signal. And aside from the $1,884 low formed on 21 August, possibly offering a technical floor, the ground below $1,919 appears thin until the weekly timeframe’s support noted above at $1,823.
On the H1 timeframe, Friday retested resistance at $1,927 and has room to nudge lower in the short term to test support at $1,914. Ultimately, knowing that there’s room to move lower on the weekly timeframe, and daily support from $1,919 appears vulnerable (along with the 200-day SMA), short-term traders will likely be expecting the yellow metal to continue lower and test $1,914 on the H1. However, for additional sellers to commit this week, a H1 close under $1,914 is likely needed, potentially exposing $1,900 as the next downside objective.