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MTrading Team • 2023-08-18

Gold stays bearish despite corrective bounces

Gold stays bearish despite corrective bounces

Gold braces for the fourth weekly losses even as a one-month-old falling support line defends intraday buyers. That said, the recovery appears elusive unless crossing the 200-SMA level of around $1,940. Even so, multiple tops marked since late May, surrounding $1,985, constitute a strong resistance for the bulls to cross before taking control. Following that, a run-up toward crossing the $2,000 round figure will be a cakewalk for the XAUUSD buyers while $2,050 and May’s peak of around $2,066 could gain the market’s attention afterward.

On the flip side, the aforementioned support line, around $1,887 by the press time, could keep poking the Gold sellers. However, a break of which could quickly drag the XAUUSD to the 61.8% Fibonacci Extension (FE) of the metal’s May-July moves, near $1,863. It’s worth noting that the bullion’s weakness past $1,863 will make it vulnerable to testing the yearly low of around $1,804, quickly followed by the $1,800 threshold.

Overall, Gold sellers keep the reins unless the prices remain below $1,985 but the downside room appears limited, which in turn suggests intermediate bounces in the price.

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