Gold erased more than 4% last week and closed below $1,950. Correction could extend to $1,850 area if bearish pressure remains intact. $2,000 psychological resistance will be a key level to watch. After closing the previous nine weeks in the positive territory, the troy ounce of precious metal finally staged a deep correction and lost 4.45%, or nearly $90, last week. Profit-taking and improving market sentiment throughout the week made it difficult for gold to find demand. Gold technical outlook Following the sharp drop witnessed during the first half of the week, XAU/USD rose modestly on Thursday but failed to close above the 20-day SMA on Friday. On the downside, $1,930 (Fibonacci 23.6% retracement of March-August uptrend) could be seen as the first support ahead of $1,860/50 area (50-day SMA, Fibonacci 38.2% retracement, August 12 low). On the flip side, $2,000 (psychological level) aligns as a key resistance. With a daily close above that level, XAU/USD could again target record highs it set at $2,075 earlier in the month. However, unless there is a fundamental driver, such as a drastic shift in market sentiment, the pair could struggle to push higher as longer-term charts continue to show extreme overbought conditions. Gold chart (daily) Additional levels to watch for FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Bitcoin Price Analystis: BTC/USD struggles to rise above $12,000 on Saturday FX Street 2 years Gold erased more than 4% last week and closed below $1,950. Correction could extend to $1,850 area if bearish pressure remains intact. $2,000 psychological resistance will be a key level to watch. After closing the previous nine weeks in the positive territory, the troy ounce of precious metal finally staged a deep correction and lost 4.45%, or nearly $90, last week. Profit-taking and improving market sentiment throughout the week made it difficult for gold to find demand. Gold technical outlook Following the sharp drop witnessed during the first half of the week, XAU/USD rose modestly on Thursday but failed to… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
