Gold Weekly Price Analysis – October 24
The breakdown of the support level at $1,901 will decrease the price towards the support level at $1,850 and $1,778. Above the current price level are resistance levels at $1,935, $1,984 and $2,004.
Resistance levels: $1,935, $1,984, $2,004
Support levels: $1,901, $1,850, $1,778
XAUUSD Long-term Trend: Ranging
The precious metal is seeking a bullish catalyst to trigger the breakout from its consolidation zone. In other words, the yellow metal is on the sideways movement within the resistance level of $1,935 and the support level at $1,901. An attempt was made on October 23 by the bears to break down the support level at $1,901 but the bears’ momentum became weak and the weekly price closed drifting sideways.
The volatility is low in the Gold market with the two moving averages close to each other and 9 periods EMA interlocked with 21 periods EMA. The breakdown of the support level at $1,901 will decrease the price towards the support level at $1,850 and $1,778. Above the current price level are resistance levels at $1,935, $1,984 and $2,004. However, the bearish pressure is increasing, coupled with the relative strength index period 14 at 50 levels bending down to indicate a sell signal.
XAUUSD Medium-term Trend: Ranging
Gold price is on the ranging movement in the 4-hour chart. The precious metal was increasing towards $1,935 two weeks ago. The mentioned level repels the price and dropped to the support level of $1,901. The bears’ momentum and the bulls’ pressure became equal and the metal commences consolidation around the $1,901 price level.
Gold price is hovering over the 9 periods EMA and 21 periods EMA and the relative strength index period 14 is pointing down with its signal line at 40 levels to indicate a sell signal. Buy Stop can be placed at $1,916.58, Stop Loss at $1,888.94, and Take Profit at $1,945.35.