Gold Price Starts Downside Correction, $1,915 Is The Key

Key Highlights

• Gold price struggled near $1,950 and corrected lower.

• It traded below a declining channel with support near $1,932 on the 4-hour chart.

• Crude oil prices surged further higher above the $87.00 level.

• The US ISM Services Index could decline marginally from 52.7 to 52.6 in August 2023.

Gold Price Technical Analysis

The value of Gold encountered opposition approaching the $1,950 area compared to the US Dollar. Its valuation reached a high close to $1,952 before embarking on a downward adjustment recently.

The 4-hour chart of XAU/USD indicates that the price declined below the 38.2% Fib retracement level of the upward move from the $1,884 swing low to the $1,952 high. Besides, the price traded below a declining channel with support near $1,932.

There was also a close below the 200 Simple Moving Average (green, 4 hours). If the price continues to move down, it could test the $1,920 support.

The 50% Fib retracement level of the upward move from the $1,884 swing low to the $1,952 high is also near $1,920. The main support could be $1,915 and the 100 Simple Moving Average (red, 4 hours).

If the bulls fail to protect the $1,915 support, there is a risk of a major decline. In the stated case, the price could decline toward the $1,885 level.

Current resistance stands in proximity to the $1,935 region. Following this, substantial resistance is predicted close to the $1,940 marker, exceeding which gold might potentially revisit the crucial $1,950 resistance area.

With regard to crude oil prices, a consistent rising trend was observed, with prices even surpassing the $87.00 resistance area.