Gold Price Analysis: XAU/USD breaches 100-day SMA for first since March

Gold Price Analysis: XAU/USD breaches 100-day SMA for first since March

Gold has found acceptance below the 100-day SMA support.

The breakdown is backed by bearish readings on key indicators.

A bigger decline may be in the offing.

Gold looks south, having breached the widely-tracked 100-day simple moving average (SMA) support for the first time since March 23.The yellow metal fell by 1.67% on Wednesday and closed below the 100-day SMA, flipping the long-term technical support into resistance. The SMA is currently located at $1,887, and the metal is trading at $1,878 per ounce.Wednesday’s drop also marked a downside break of the ascending channel represented by trendlines connecting Sept. 28 and Oct. 14 lows and Oct. 2 and Oct. 12 highs.The rising channel breakdown and the 100-day SMA violation are backed by a below-50 or bearish reading on the 14-day relative strength index. Further, the MACD histogram has crossed below zero, indicating a bearish reversal.As such, gold […]

About the author: StockMan
Tell us something about yourself.
Posting Guidelines
Do
  • Do contribute something to the discussion
  • Do post factual information, analysis and your view on company valuations
  • Do disclose if you have an interest in a security
  • Do take our Terms of Use seriously
Do Not
  • Do not make low-content posts, unsubstantiated ramps or untruthful/misleading statements
  • Do not complain about a post unless you have reported it first, and not on the forum.
  • Do not post financial advice
  • Do not advertise or post sponsored content

Get involved!

Get Connected!

Come and join our community. Expand your network and get to know new people!

Comments

No comments yet