Technical Analysis:
The XAU/USD is currently trading around $1,776, positioned at a critical support level. The recent downtrend has brought the pair below both the 50-period and 200-period Weighted Moving Averages (WMAs), located at $1,780.28 and $1,773.36, respectively, indicating a bearish sentiment. This downward momentum suggests that unless XAU/USD can sustain above this support, further declines may be likely.
A break below $1,776 could pave the way for a deeper retracement toward $1,750, while any recovery might encounter resistance around the $1,780 mark, aligning with the 50-WMA and 200-WMA.
Support: 🔻 $1,776, $1,750
Resistance: 🔺 $1,780.28 (50-WMA), $1,773.36 (200-WMA)
Moving Averages:
📉 XAU/USD remains below both the 50-WMA and 200-WMA, reinforcing a bearish outlook. A sustained close above these moving averages could indicate a potential shift in sentiment, but sellers appear to be in control for now.
Volume:
📊 Recent volume has increased as XAU/USD nears the $1,776 support level, suggesting heightened selling pressure. A further rise in volume on a breakdown below this support could confirm a bearish continuation.
Key Levels to Watch:
Support: $1,776, $1,750
Resistance: $1,780.28 (50-WMA), $1,773.36 (200-WMA)
Outlook:
🚩 XAU/USD remains under significant pressure, with a break below $1,776 potentially leading to further losses. However, should it hold above this level, a short-term recovery might be possible, though resistance near the WMAs may cap any upside moves.
Fundamental Analysis:
Gold remains sensitive to global economic factors, including the strength of the U.S. Dollar and inflationary pressures. Ongoing uncertainties in the financial markets are also influencing safe-haven demand, though recent Dollar strength has weighed on XAU/USD.
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