10 August
Gold and silver market
Spot Gold prices declined on Wednesday as investors held back in anticipation of crucial U.S. inflation data, which could provide insights into the Federal Reserve’s monetary policy approach.
The Gold Price remains in a weaker position after recently breaking through the lower boundary of a two-week declining trend. This move brings it close to a horizontal support zone that has been established over the past seven weeks.
It’s important to note that the Relative Strength Index (RSI) line, positioned at 14, indicates near oversold conditions. This is in line with sluggish signals from the Moving Average Convergence and Divergence (MACD) indicator, which collectively pose a challenge to further downward movement in the XAU/USD price.
This situation emphasizes the immediate support level that has been significant since June 22, centered around $1,915. This level could potentially create resistance for the bears before any consolidation before the upcoming event.
On the other hand, if there is an upward break from the aforementioned channel’s lower boundary, which is roughly at $1,917 at the moment, it could push the Gold Price towards a descending resistance line originating from August 31. This resistance line is near $1,930.
Following this movement, the convergence point of the 200-bar Exponential Moving Average (EMA) and the previously mentioned upper boundary of the channel, approximately $1,948, will be crucial for potential XAU/USD buyers to observe.
In the scenario where the Gold Price surpasses the obstacle at $1,948, a support line that has been in place for six weeks around $1,955 will act as the final line of defense for the bears.
– Nitin Kedia
