Gold Price Analysis: XAU/USD pierces $1,940 on the break of immediate falling channel
|- Gold prices pick-up bids after multiple bounces off $1,930.
- 200-HMA, 50% Fibonacci retracement guard immediate upside amid bullish MACD.
- Sellers will have multiple supports challenging further weakness before $1,900.
Gold prices rise to $1,940.52, up 0.28% on a day, during the early Monday. The bullion recently flashed the intraday high of $1,940.98 after breaking a downward sloping trend channel formation from Thursday. The up-move also gains support from bullish MACD.
As a result, the quote’s run-up to 200-HMA and 50% Fibonacci retracement of August 26 to September 01 upside, near $,1947/49, is more likely.
However, a sustained break of $1,949, also clearing the $1,950 round-figures, will enable the bulls to challenge the $1,977 and $2,000 psychological benchmark.
Alternatively, the commodity’s downside break of the channel’s upper line, at $1,936, will be followed by $1,930 to challenge the short-term declines.
During the quote’s further weakness past-$1,930, the channel’s support line near $1,912 and August 27 low around $1,910 may offer intermediate halts ahead of recalling $1,900 on the charts.
Gold hourly chart
Trend: Further recovery expected
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.