Gold price declined below $1700 area today during the Asian session. Gold price drops as President Donald Trump plans to reopen the country. What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.
April 17, 2020 | AtoZ Markets – Gold is currently trading around $1690 area after breaking below $1700. Gold price drop below $1700 quite impulsively on the intraday chart, which may indicate that the U.S. Dollar may get strong. As per the current scenario, Gold price may push further lower, but a daily close is required.
Global stock markets are rising as the U.S. President Donald Trump plans to reopen the country after a one month of lockdown. Moreover, the number of deaths are decreasing in the United States as the death toll recorded 24 yesterday. The total infected cases are currently 978,210 and recovered 57,844 till the date. Besides, 5.25 million more Americans filed first-time unemployment insurance last week, according to the Labor Department report of Thursday. Moreover, Gold Futures down 0.5%, to $8.50 at $1731.70 per ounce and Spot Gold was up 0.01%, to 9 cents at $1715.50 by 18.36 GMT.
Gold Price Drop – Can Hold the Safe Haven Reputation in the Days Ahead?
Gold is currently residing near $1690 area and trying to push lower. The price has shown a very impulsive and non-volatile bullish momentum last week, which set the Gold price to a new high.
Image: Gold 4 Hour Chart
According to the 4-hour chart, XAU is currently residing near $1690 area after breaking below the rising trend line. The price also broke below the dynamic levels, which indicates further bearish pressure. As per the current price action, if the price can have another 4-hour bearish close below $1700 area, the bears may push the price lower towards $1640 in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing above the price, along with the Kijun line and the Tenkan line. The dynamic levels may work as a strong resistance in the process. Moreover, the MACD lines are residing above 0.00 level and have a bearish cross over, which indicates further bearish momentum can be seen.
XAU May Retrace Down Before Continue the Bullish Trend
According to the daily chart, Gold has broken above $1700 area but failed to sustain further. Moreover, the price pushed down after facing resistance at the Bollinger Band’s upper band. As per the current price action context, if Gold can have a daily close below $1700 area, the price may retrace down to $1640 area. Apart from this, if the price reaches $1640 and bounce, the bulls may continue the bullish trend higher towards $1800 in the process.
Image: Gold Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing far below from the price, which may pull the price back to the Mean. Besides, the Bollinger band’s middle band is currently residing below $1640 area, which indicates that the price may push down to take retracement toward the middle band. Moreover, the RSI line is currently residing below overbought level 70 and broke below the rising trend line, which indicates that bears may continue to push lower in the coming days.
To conclude, Gold may face downward pressure in the upcoming days as the U.S. President gave a hint to finish the lockdown and reopen the country. A daily close is needed to find the definite momentum in the process.