Oct 15, 2022

VOT Research Desk

How crucial of a pivot point $1,700 is for gold was demonstrated by this week’s price movement.

Following a decline below that level at the start of the week, the price of gold continued to decline and reached its lowest point in two weeks close to $1,630 before somewhat recovering its losses in the second half of the week.

But ultimately, XAU/USD lost more over 2% weekly, breaking a two-week winning streak. XAU/USD failed to finish above the 20-day SMA after having tested it twice in the second half of the week, and the Relative Strength Index (RSI) indicator on the daily chart fell below 50, indicating a bearish bias.

On the downside, the two-week low of $1,640 serves as the first level of support, followed by $1,620, the bottom of the most recent decline, and $1,600. (psychological level).

The 20-day SMA is placed around $1,670, so if the pair moves over $1,665 (the Fibonacci 23.6% retracement), it is expected to encounter immediate resistance there.

An increase in buying pressure and the possibility of a prolonged rebound toward $1,690 (the Fibonacci 38.2% retracement) might result from a daily closing above that level.

The average one-week forecast for gold, according to analysts, is $1,670. They anticipate a rise in gold prices next week.

A mixed picture is painted by the one-month prognosis, but the one-quarter perspective reveals that most experts expect the price of the yellow metal to be above $1,700 by the end of the year.

Oct 08, 2022

VOT Research Desk

On the daily chart, the Relative Strength Index (RSI) indicator decreased below 50 at the conclusion of the week, indicating that gold has lost its bullish momentum and has switched to neutral in the short term.

If XAU/USD is able to maintain its position above $1,700, it will likely encounter initial resistance around $1,710 (the Fibonacci 50% retracement of the most recent downturn), followed by $1,720. (50-day SMA). The pair may challenge $1,730 (the Fibonacci 61.8% retracement) and aim for $1,760 (the 100-day SMA) with a daily close above the latter if it succeeds to turn it into support.

The Fibonacci 38.2% retracement at $1,690 serves as temporary support before $1,680 on the fall (20-day SMA). Gold may continue to decline toward $1,665 (Fibonacci 23.6% retracement) if it breaks through the latter and begins to use it as resistance.