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Gold Price Dips And Could Revisit $1,900

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Aayush Jindal

Key Highlights

  • Gold price is moving lower below the $1,950 pivot zone.
  • A major bearish trend line is forming with resistance near $1,935 on the 4-hour chart.
  • Crude oil prices are rising steadily above the $80 resistance.
  • EUR/USD is consolidating above the 1.0920 support zone.

Gold Price Technical Analysis

Gold price struggled to clear $1,980 and started a fresh decline against the US Dollar. The price traded below the $1,950 support to move into a bearish zone.

The 4-hour chart of XAU/USD indicates that the price settled below $1,940, the 100 Simple Moving Average (red, 4 hours), and the 200 Simple Moving Average (green, 4 hours).

A low is formed near $1,923 and the price is now consolidating losses. Immediate resistance is near the $1,935 zone. There is also a major bearish trend line forming with resistance near $1,935 on the same chart.

The trend line is near the 23.6% Fib retracement level of the downward move from the $1,971 swing high to the $1,923 low.

The next major resistance is near the $1,950 level or the 50% Fib retracement level of the downward move from the $1,971 swing high to the $1,923 low, above which the price could rise toward $1,970.

Any more gains might send the price toward the $1,978 resistance level or even $1,985. Conversely, the price might decline further. Initial support is near the $1,925 level. The next major support is near $1,915.

If the bulls fail to protect the $1,915 support, there is a risk of a major decline. In the stated case, the price could decline toward the $1,900 level.

Looking at crude oil prices, there was a steady increase and it seems like the bulls might aim for a move toward the $85 level.

Economic Releases to Watch Today

  • EIA Crude Oil Stocks Change – Forecast -0.233M, versus -17.049M previous.
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