Gold Price Analysis: XAU/USD bears stay directed towards $1,900
|- Gold prices remain on the back foot for second consecutive day.
- Sustained break of six-week-old support line, now resistance, keeps the sellers hopeful.
- 200-bar EMA adds to the upside barriers, August month’s low offer extra support.
Gold remains mildly heavy around $1,910, down 0.11% on a day, while heading into Tuesday’s European session. The bullion slumped the most since August 19 the previous day after breaking a 1.5-month-old ascending trend line.
Although counter-trend traders tried to recover losses from $1,882 while reaching $1,920, failures to cross the previous support line keeps the bears hopeful.
Hence, gold sellers are currently targeting the $1,900 psychological magnet before the previous day’s low of $1,882. Though, any further downside will have to respect August month’s bottom surrounding $1,863, if not then the early-July tops near $1,818 will return to the charts.
In a case where the fresh pullback moves cross the immediate resistance line around $1,928/29, the 200-bar EMA level of $1,938 can question the buyers.
If at all the upside momentum stays strong beyond $1,938, the previous week’s high around $1,973 will lure the bulls.
It’s worth mentioning that the RSI conditions may probe bears below the $1,900 round-figures.
Gold four-hour chart
Trend: Bearish
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.