Key Highlights
· Gold price failed to hold a major support near $1,285 and declined against the US Dollar.
· There was a break below a major bullish trend line with support at $1,296 on the 4-hours chart of XAU/USD.
Gold Price Technical Analysis
After trading above the $1,300 level, gold price failed to hold gains against the US Dollar. The price started a downside move and broke a few major supports including $1,295.
A high was formed at $1,309 before the price started a bearish wave. It declined below $1,300 and closed below the 100 simple moving average (red, 4-hour). During the decline, there was a break below a major bullish trend line with support at $1,296 on the 4-hours chart of XAU/USD.
More importantly, the price broke two key supports at $1,290 and $1,285, opening the doors for more losses. The price traded close to the $1,270 level and is currently consolidating losses.
On the upside, an initial resistance is near the 23.6% Fib retracement level of the last decline from the $1,309 high to $1,270 low. However, the most important hurdle is near $1,285, which was a support earlier and now coincides with the 50% Fib retracement level of the last decline from the $1,309 high to $1,270 low.
