Falling gold price targets final support

Gold Technical Price Prediction: XAU/USD Weekly Trading Levels

gold price are poised to score a fourth consecutive weekly decline with XAU/USD over 2% since the start of the week. The decline is now testing key support targets and we are on the lookout for a possible exhaustion bottom in the weeks ahead. It’s the updated targets and invalidation levels that count on the XAU/USD weekly price chart. Review my latest Weekly strategy webinarfor a detailed analysis of thistechnical gold setup and more.

Gold Price Chart – XAU/USD Weekly

Chart prepared by Michel Boutrostechnical strategist; Gold on Tradingview

Remarks: Last month weekly gold PriceOutlook we noted that a “multi-week range technical breakdown in gold keeps the risk on the downside towards the end of the month”. For a week we have been focusing on two specifications Support objectives at the end of the high week 2021 at 1849 and the extension to 100% of the annual decline / 61.8% Fibonacci 20221 rally retracement at 1818/28. Gold is trying to break the first of these levels today and the focus is on the weekly close.

Initial rresistance is expected at the close of the high week of May 2020 at 1903 with bearishthe invalidation is now lower at the close of the April week high (apart from the reversal week) at 1926 – a breach/close above this would be needed to suggest a more meaningful lower is in place. A lower break from here keeps the focus on 1818/28 – losses beyond this threshold would be extremely detrimental from a technical point of view with such a scenario exposing the annual close of the low week to 1791 and beyond.

At the end of the line : The gold breakdown is probing the first of two major support levels and a weekly close below 1849 would be needed to maintain focus on a push towards 1818/28 – looking for a bigger reaction if it were. reached. From a trading standpoint, look to reduce short exposure/lower protective stops on a stretch to confluent support. IF the weekly close rallies above 1849, the threat of a bigger rally increases. Keep in mind that we have key US core inflation data at our fingertips tomorrow – stay nimble here and stick to the weekly close. Review my latest Gold Price Outlook for a closer look at short-term XAU/USD technical trading levels.

For a full analysis of Michael’s trading strategy, see his Fundamentals of Technical Analysis Series on Bbuild a Jrading Sstrategy

Gold Traders Sentiment – XAU/USD Price Chart

Gold Trader Sentiment - XAU/USD Price Chart - GLD Retail Positioning - GC Technical Forecast

  • A summary of IG Customer Sentiment shows traders are net long gold – the ratio is +5.05 (83.48% of traders are long) – generally bearishreading
  • Long positions are4.04% more than yesterday and 0.26% less than last week
  • Short positions are 2.33% less than yesterday and 7.34% less than last week
  • We generally take a contrarian view of crowd sentiment, and the fact that traders are net buyers suggests that gold prices may continue to decline. Traders are sharper than yesterday and last week, and the combination of current positioning and recent changes gives us a stronger gold-bearish contrarian trading bias from a feeling point of view.

Past Weekly Technical Charts

– Written by Michel BoutrosTechnical Strategist at DailyFX

To follow MIchael on Twitter @MBForex

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