Gold Weekly Price Analysis – September 05
The breakout at the lower trend line of the wedge may lead to the breakdown of the $1,901 demand level and the price may decline to the $1,871 level. Price ranging may continue in the weeks ahead in case the price is unable to break down the $1,935 level.
Resistance levels: $1,984, $2,020, $2,074
Support levels: $1,935, $1,901, $1,871
XAUUSD Long-term Trend: Bearish
The gold price has been struggling to make significant and meaningful movements after the collapse of the price in August. It is not a surprise to see precious metal consolidating as the UD dollar is moving in the opposite direction of the Gold. The major question in the mind of the traders is; will Gold continue in the Range-bound zone? Many fundamental forces are contending with the Gold price like the US dollar and treasury yields. The movement of Gold remains within the wedge formed.
The Gold price is yet to break down the support level at $1,935, but it is trying to break down the two EMAs. The price closed yesterday with the daily candle below the 9 periods EMA and 21 periods EMA. The breakout at the lower trend line of the wedge may lead to the breakdown of the $1,901 demand level and the price may decline to the $1,871 level. Price ranging may continue in the weeks ahead in case the price is unable to break down the $1,935 level. The resistance levels may be found at $1,984, $2,020 and $2,074 level.
XAUUSD Medium-term Trend: Bearish
Gold is bearish on the 4-hour chart; the precious metal hits the resistance level at $1,984 and the upper trend line of the wedge, it bounces off the level. The price falls and crosses the two EMAs downside. It continues to trade below the EMAs until the closing of the market. The price remains within the wedge.
The precious metal is trading below 9 periods EMA and 21 periods EMA and the relative strength index period 14 is not showing specific direction indicates that consolidation is ongoing.