Gold initiated a moderate rebound during the second half of August. However, its momentum dwindled after an unsuccessful attempt at clearing trendline resistance, which ultimately led to a pullback that resulted in prices slipping below the 200-day simple moving average this week.
Looking at the daily chart, XAU/USD has been on a downward trajectory over the past few days, with prices edging closer to Fibonacci support at $1,895 – a key floor defined by the 38.2% retracement of the Sept 2022-May 2023 rally. While this zone may serve as a formidable barrier against further declines, a break beneath it could heighten the bearish force, opening the door for a retreat towards $1,855.
In the event of a bullish reversal, initial resistance stretches from $1,920 through $1,930. Successfully piloting above this technical hurdle could rekindle buying interest, creating the right conditions for a move towards $1,955. On further strength, the focus shifts to $1,985, followed by the psychological $2,000 level.
Looking at the daily chart, XAU/USD has been on a downward trajectory over the past few days, with prices edging closer to Fibonacci support at $1,895 – a key floor defined by the 38.2% retracement of the Sept 2022-May 2023 rally. While this zone may serve as a formidable barrier against further declines, a break beneath it could heighten the bearish force, opening the door for a retreat towards $1,855.
In the event of a bullish reversal, initial resistance stretches from $1,920 through $1,930. Successfully piloting above this technical hurdle could rekindle buying interest, creating the right conditions for a move towards $1,955. On further strength, the focus shifts to $1,985, followed by the psychological $2,000 level.