Gold price fell to $1,920 after rising towards $1,980 in July. Economists at ANZ Bank analyze XAU/USD technical outlook.
In a bearish trend
The technical chart shows a broad bearish trend is continuing, with Relative Strength Index (RSI) moving towards oversold territory.
Consolidation near $1,900 forms a key support level. A breach of this support could possibly trigger a fresh sell-off. Nevertheless, we see little possibility of the price falling back to the $1,800 range.
On the upside, it needs to break the resistance of recent highs near $1,980. If Gold trades above this level, this could add a fresh bullish tinge to market sentiment. We expect Gold to trade in the range of $1,900-$1,980 until the Fed confirms its monetary path.
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