Gold Price Forecast: XAU/USD Sellers May Press Towards 200-DMA
XAU/USD Price Outlook
Gold Prices – Half way Through to 200-DMA
On Nov 5, Gold declined below $1500 handle then broke below 50-day average, generating two bearish signals. The precious metal continued losing value and yesterday, the price printed a multi-month low at $1,445 o/z creeping towards 200-Day average. The level has never been tested in nearly six months.
The Relative Strength Index (RSI) has remained flat since Friday, indicating to lower downtrend impulse.
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Gold DAILY PRICE CHART (Oct 1, 2018 – Nov 13, 2019) Zoomed out
Gold DAILY PRICE CHART (15 JUly – Nov 13, 2019) Zoomed In
Looking at the daily chart, we notice on Friday Gold broke below the Oct 1 low at $1,459 discussed in our last update . Currently, the price is still moving in the same trading zone $1,440 - $1,510.
Thus, a close below the low end of the zone could send XAU/USD towards $1,400. Further close below the low end may embolden sellers to press towards $1,361. That said, the weekly support levels and areas marked on the chart (zoomed in) should be kept in focus.
In turn, any failure in closing below the low end of the zone could keep XAU/USD in the range i.e. may cause a rally towards the high end of the zone.
See the chart to know more about the following trading zone with the weekly resistance levels price would encounter in a further bullish move.
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Gold Four-HOUR PRICE CHART (Oct 3 – Nov 13, 2019)
From the four-hour chart, we notice on Nov 7, XAUSUD broke below $1,474 then declined creating lower highs with lower lows.
Yesterday, sellers paused bearish price action after leading the price to its lowest since early August. Gold could correct higher if breaks above $1467.
A break above $1489 may send XAUSUD towards $1,510. Nevertheless, the daily resistance level underlined on the chart should be watched closely. On the other hand, a break below $1,430 may see the precious metal trading even lower towards $1,412. Although, the weekly support underlined on the chart should be considered.
See the chart to know more about key technical levels in a further bullish/bearish scenario.
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Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.