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The Gold Price Could Slide Further

July 7, 2022

  • Gold price failed to recover above $1,770.
  • Bearish trend line has formed resistance near $1,812.

The Gold, US Dollar price attempted a recovery above the $1,810 level before declining rapidly. XAU/USD took a pause near $1,770 before sliding further. 

XAU/USD 4-Hour Chart (Trend: BEARISH)

The XAU/USD price fell rapidly after testing resistance near $1,814 and the key bearish trend line. The price has since dropped down to a low of $1,731 and remains well below both the 100-MA (red) and 200-MA (blue). There has been a minor upside correction with the price currently trading around the $1,745 level.

For the price to turn bullish, the quote will first need to test resistance near $1,750 and the 23.6% Fibonacci retracement level of the downward move from the swing high of $1,812 to the swing low of $1,732. Above this there is further resistance near $1,770 and the 50% Fibonacci retracement level (of the $1,812 high to the $1,732 low). Further gains could see the price climb back up towards the $1,800 level. 

In contrast, if the price continues bearish, the quote will first need to test support near the $1,730 level. Below this there is further support near $1,720. Further losses could see the price drop down as low as $1,700, a level last seen in August 2021.

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