Gold Price Analysis: XAU/USD loses traction, eyes next support at $1,767
- XAU/USD is edging lower ahead of American session.
- Next support for gold is located at $1,767.
- Strong resistance seems to have formed a little above $1,780.
The XAU/USD pair failed to break above $1,800 last week and stayed relatively quiet during the Asian trading hours on Monday. Ahead of the American session, however, gold lost its traction and was last seen losing 0.4% on the day at $1,770.
Gold technical outlook
With the latest decline, the Relative Strength Index (RSI) indicator on the four-hour chart fell toward 40, suggesting that the bearish momentum is building up. Additionally, XAU/USD broke below the 50-period SMA on the same chart for the first time in nearly two weeks.
On the downside, the initial support is located at $1,767 (Fibonacci 50% retracement of the latest uptrend). With a break below that level, gold could target $1,760 (Fibonacci 61.8% retracement) and $1,756 (100-period SMA).
Resistance, on the other hand, could be seen at $1,775 (Fibonacci 38.2% retracement/50-period SMA), $1,783 (Fibonacci 23.6% retracement/20-period SMA).
Additional levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
