Gold Weekly Price Analysis – August 08
Further increase in the bulls’ momentum may push the price to break up $1,984 resistance level in which it may extend to the previous high at $2,020 and $2,074. Continuation of the bearish trend may expose the price to the demand levels at $1,901 and $1,871.
Resistance levels: $1,984, $2,020, $2,074
Support levels: $1,935, $1,901, $1,871
XAUUSD Long-term Trend: Bearish
Gold reached a high of $2,074 on August 06. The key resistance level is the high of the year at the moment for Gold. The level could not be penetrated by the bulls and the price sells off from the level sharply to the support level at $1,909 with the formation of strong and massive bearish candles. On August 12, the yellow metal declined further to test the demand level of $1,871 but the bulls defended the level and the daily candle turned to long-legged Doji. The buyers pushed up the price and the market closed above $1,935 price level.
The current rise in the price of Gold could be a price retracement for the bears or reversal as the price is trading in between the 9 periods EMA and 21 periods EMA before the weekly market close. Further increase in the bulls’ momentum may push the price to break up $1,984 resistance level in which it may extend to the previous high at $2,020 and $2,074. Continuation of the bearish trend may expose the price to the demand levels at $1,901 and $1,871.
XAUUSD Medium-term Trend: bearish
Gold is bearish in the medium-term outlook. The increase in the price of the yellow metal was rejected at the resistance level of $2,074, the bears took over and the price dropped to the demand level at $1,871. The price bounces with the formation of a 4-hour bullish candle that engulfs the three previous bearish candles. It is currently consolidating at $1,935 price level.
The two EMAs are tightly close to each other and the price is trading in between the two EMAs. The Relative Strength Index period 14 is found at 40 levels and the signal line parallel to the level indicates that consolidation is ongoing in the Gold market. Place Buy Stop order at $1,966.07, Stop Loss at $1,921.57, and Take Profit at $2,010.57.