FX.co ★ Sign | XAU/USD, GOLD

Forecast of Gold Daily time frame chart outlook: Price movement occurred in two distinct range zones on the daily time frame chart for a few days. I have represented both of these range zones in the accompanying diagram by using rectangles. The upper range zone's support level On Monday, Gold broke this week after forming a strong bearish engulfing candle. On Tuesday, however, Gold even broke the support level in the bottom range zone. The price has been circling the 26 EMA line for the past four trading days. Gold is currently making a price adjustment, however, given that the price has reached the overbought level on this time frame chart, the price of Gold will soon drop once more due to its substantial bearish momentum. The price of Gold will decline to test the support levels of 2194.47 and 2069.94 when it crosses the moving average lines to the bearish side and changes the direction of its trend.

Weekly time frame chart outlook: Gold hit its highest peak on the weekly time frame chart two weeks ago at 2430.84. After that, the price of Gold fell sharply, which is why Gold formed a robust pin bar candle. Gold prices will not test the high point as during the last week they have somewhat increased but have not yet reached the higher point, about which I have already warned that a bearish movement would begin. The price of Gold is already high, and this week it formed an inverted pin bar candle, indicating that sustained bearish moves are about to cause the price of Gold to drop. The RSI indicator's value remains overbought even though. The next support levels are displayed for the bears' assistance in the diagram that is included.