Key Highlights
- Gold price is moving lower below the $1,900 zone.
- A major bearish trend line is forming with resistance near $1,900 on the 4-hour chart.
- Crude oil prices corrected gains and traded below $82.00.
- The US Manufacturing PMI could rise from 49 to 49.3 in August 2023 (Preliminary).
Gold Price Technical Analysis
Gold price struggled to stay above $1,950 and started a fresh decline against the US Dollar. The price traded below the $1,932 support to move into a bearish zone.
The 4-hour chart of XAU/USD indicates that the price settled below $1,920, the 100 Simple Moving Average (red, 4 hours), and the 200 Simple Moving Average (green, 4 hours).
The price even declined below the $1,900 level and tested the $1,885 zone. A low is formed near $1,884 and the price is now consolidating losses. Immediate resistance is near the $1,900 zone. There is also a major bearish trend line forming with resistance near $1,900 on the same chart.
The trend line is just below the 23.6% Fib retracement level of the downward move from the $1,982 swing high to the $1,884 low.
The next major resistance is near the $1,920 level or the 100 Simple Moving Average (red, 4 hours), above which the price could test the 50% Fib retracement level of the downward move from the $1,982 swing high to the $1,884 low.
Conversely, the price might decline further. Initial support is near the $1,884 level. The next major support is near $1,875.
If the bulls fail to protect the $1,875 support, there is a risk of a major decline. In the stated case, the price could decline toward the $1,860 level.
Looking at crude oil prices, there was a downside correction below the $82.00 support and there is a risk of more downsides.
Economic Releases to Watch Today
- Germany’s Manufacturing PMI for August 2023 (Preliminary) – Forecast 38.7, versus 38.8 previous.
- Germany’s Services PMI for August 2023 (Preliminary) – Forecast 51.5, versus 52.3 previous.
- Euro Zone Manufacturing PMI for August 2023 (Preliminary) – Forecast 42.6, versus 42.7 previous.
- Euro Zone Services PMI for August 2023 (Preliminary) – Forecast 50.5, versus 50.9 previous.
- UK Manufacturing PMI for August 2023 (Preliminary) – Forecast 45.0, versus 45.3 previous.
- UK Services PMI for August 2023 (Preliminary) – Forecast 50.8, versus 51.5 previous.
- US Manufacturing PMI for August 2023 (Preliminary) – Forecast 49.3, versus 49.0 previous.
- US Services PMI for August 2023 (Preliminary) – Forecast 52.2, versus 52.3 previous.
