The Gold decline is temporary may bounce higher from $1625 area in the coming days. Gold may now continue to push lower towards expected support area. Let’s check the Gold Technical Analysis for more levels and insights.
March 11, 2020, | AtoZ Markets – Gold successfully broke below $1650 area with a daily close. Gold is now very corrective and volatile. The price is currently residing near $1665 area. Gold may find resistance at $1665 and continue to decline in the coming days.
Gold price rose today after a strong fall in the last session. Investors are fearful that the uncertainty of the U.S. President Donald Trump incentive package to soften the economic impact from the Coronavirus outbreak. Besides, Spot Gold rose 0.4% at $1656 per ounce and the U.S. Gold Futures decline 0.2% to $1665.
Gold Decline is Temporary may Recover
Gold is currently residing near the $1665 area and trying to push lower. The price of Gold has been quite corrective and volatile after rejecting the $1700 resistance area. The XAU may continue further lower, but this decline may be temporary.
Image: Gold 4 Hour Chart
According to the 4-hour chart, the price of Gold is currently trading at $166o and trying to recover lower. Gold faces resistance at $1665 followed by the intense Bearish pressure. If the price continues to push down, the bears may reach lower towards $1625 support area in the coming days.
Moreover, the dynamic level of 20 EMA is residing near the current price, along with the Tenkan line. It may hold the price as resistance and help Bears to decline lower. Besides, the MACD indicator lines are slopping down gradually as the price pushing lower.
Gold Bullish Trend may Continue after Retracement
According to the Daily chart, the Gold is currently Bearish and retracing higher before further decline. After rejecting the $1700 resistance area, the XAU has been quite corrective and volatile. The Gold decline is temporary may find support at $1625 area. The Bulls may continue the Bullish trend towards $1700 area again after pushing lower for a certain period.
Image: Gold Daily Chart
Moreover, the dynamic level of 20 EMA is residing below the current price, along with the Kijun line and the Tenkan line. The dynamic levels may work as strong support for the price in the process, which may result in pushing higher in the coming days. On the other hand, the MACD histogram volumes are showing Bearish Divergence, which may help Bearish to continue lower.
To conclude, Gold Bears may continue to decline towards the next support area at $1625. Therefore, if Bulls manages to intervene at $1625, the Bullish trend may continue with the target of $1700 again.