#GoldTechnical Analysis#24K99 News On Tuesday (October 8th), during the Asian session, spot gold suddenly fell rapidly from near $2648 per ounce, and the gold price is currently trading around $2638 per ounce again. FXStreet's Chief Analyst Valeria Bednarik wrote an article analyzing the technical outlook for gold.
(Spot gold 5-minute chart Source: 24K99)
Bednarik wrote that the gold price is holding at familiar levels, but buyers are far from giving up, currently waiting for new trading clues.
According to Bednarik, once the gold price effectively breaks below the $2638 per ounce area, the price may continue to decline.
Impacted by a significant increase in US bond yields, gold softened on Monday, but due to geopolitical tensions, the decline in gold prices was limited. Spot gold closed down 0.41% on Monday, at $2642.28 per ounce.
Zaner Metals' Vice President and Senior Metal Strategy Analyst, Peter A. Grant, stated, "I still believe that the short-term potential for the gold price could reach $2,700 per ounce, and the long-term target of $3,000 per ounce remains effective, as the approaching USA election, geopolitical tensions, and political uncertainty all contribute to safe-haven demand."
Gold is considered a tool for hedging geopolitical and economic uncertainties. The gold price reached a historic high of $2,685.42 per ounce on September 26th.
Short-term technical outlook for gold
Bednarik stated that the daily gold chart shows the gold price pressuring the recent wedge pattern bottom, but still staying within that formation. The gold price is also developing above all its moving averages, with the 20-day Simple Moving Average (SMA) steadily rising towards around $2,616 per ounce. The 100-day SMA and 200-day SMA maintain their bullish slopes, each about $200 lower than the 20-day SMA. Finally, the momentum indicator remains neutral within positive levels.Simple Moving Average(SMA) steadily rising towards around $2,616 per ounce. The 100-day SMA and 200-day SMA maintain their bullish slopes, each about $200 lower than the 20-day SMA. Finally, the momentum indicator remains neutral within positive levels.Relative Strength Index(RSIDropping to around 63 corrected the overbought condition, far from supporting a new downward trend in gold prices.
Bednarik added that the near-term outlook for gold is neutral to bearish, but it needs to fall below the $2638 per ounce area to confirm further decline. The mildly bearish 20-period SMA provides intraday resistance near $2652 per ounce, while technical indicatorsdeveloping within the negative zone, but lacking clear directional strength. On the positive side, the 100-period SMA and 200-period SMA maintain an upward slope below the current gold price level, indicating that buyers have paused but have not given up.
(Spot gold 4-hour chart source: FXStreet)
Bednarik gave the latest important support and resistance levels for the gold price:
Support levels: $2638.10 per ounce; $2624.50 per ounce; $2616.00 per ounce.
Resistance levels: $2652.10 per ounce; $2663.00 per ounce; $2673.20 per ounce.
At 10:25 Beijing time, spot gold is trading at $2638.15 per ounce.
