Gold Price Analysis: XAU/USD's upside capped by bearish 10-day SMA

Gold remains in bearish territory below the 10-day SMA.
A break below Wednesday's low could attract stronger selling pressure.

Omkar Godbole FXStreet Contributor

Gold is again struggling to take out the descending or bearish 10-day simple moving average (SMA), having failed to keep gains above the SMA hurdle on Wednesday.

The metal tested the 10-day SMA at $1,891 a few minutes ago and is now trading near $1,888 per ounce.

A repeated rejection at the bearish 10-day SMA has boosted risk in favor of a drop to Wednesday's low of $1,881. A break lower would confirm an end of the bounce from the Sept. 28 low of $1,848 and open the doors for a re-test of that level.

On the higher side, the resistance of the trendline falling from Aug. 7 and Sept. 16 highs is the level to beat for the bulls. At press time, the bearish trendline is located at $1,935, and the metal is trading at $1,889 per ounce.

Daily chart

Trend: Bearish

Technical levels

1. R3 1919.17
2. R2 1910.77
3. R1 1898.33
PP 1889.93
1. S1 1877.49
2. S2 1869.09
3. S3 1856.65

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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