Oct, 12 2022
VOT Research Desk
Early on Wednesday, the price of gold is exhibiting a fair amount of volatility as bulls try their luck amid resumed selling of the US dollar along with the yields. A recent Financial Times report (FT).
According to the analysis, the gold price is eager to fall below the crucial support level at roughly $1,660, which is the convergence of the lows from the previous week, the previous day, and the Fibonacci 38.2% one-month.
The pivot point one-day S1 at $1,657 is where the immediate cushion is located. Below this level, a new downswing will begin and head toward the psychological $1,650 level.
Bullish commitments will subsequently be tested by the pivot point one-day S2 at $1,648. The Fibonacci 38.2% one-day at $1,671 is the next big upward barrier, and if it is broken, the Fibonacci 61.8% one-day at $1,675 will be tested.
For XAU bulls, breaking over the $1,677 low from the prior year will be difficult.
Technically, as long as the XAU/USD price maintains below the now at $1,674 slightly bearish 21-Daily Moving Average (DMA), the negative bias is still there.
Bears are expected to maintain control as the 14-day Relative Strength Index (RSI) markets flat lined below the 50.00 level
.
In order for sellers to reach the psychological threshold of $1,650, a daily close below the sporadic support of $1,660 is required. The next target on sellers’ radars will be the $1,642 low on September 29.
In contrast, regaining the 21DMA on a basis of daily closing prices is essential to counteracting the negative trend.
Before the $1,700 barrier enters the picture, the day’s high of $1,684 will be tried higher.
