Key Highlights
- Gold price declined heavily below the $1,900 support.
- It could start a recovery if it clears the $1,840 resistance on the 4-hour chart.
- Crude oil prices corrected lower from the $95.00 resistance.
- The US ISM Services PMI could decline from 54.5 to 53.6 in Sep 2023.
Gold Price Technical Analysis
Gold price started a major decline from well above $1,920 against the US Dollar. The price declined heavily below the $1,900 support zone.
The 4-hour chart of XAU/USD indicates that the price settled above the $1,865 level, the 200 Simple Moving Average (green, 4 hours), and the 100 Simple Moving Average (red, 4 hours).
The decline was even extended below the $1,840 level. A low was formed near $1,815 and the price is now consolidating losses. On the upside, the price is facing resistance near the $1,832 and $1,835 levels.
The next major resistance is near the $1,840 level, above which Gold could revisit the key $1,850 resistance zone. Any more gains might call for a move toward $1,880.
On the downside, the price might find support near the $1,815 level. The next key support is near $1,800. If the bulls fail to protect the $1,800 support, there is a risk of a major decline. In the stated case, the price could decline toward the $1,750 level.
Looking at crude oil prices, there was a sustained upward move toward the $95.00 level before the bears appeared and initiated a downside correction.
Economic Releases to Watch Today
- Germany’s Services PMI for Sep 2023 – Forecast 49.8, versus 49.8 previous.
- Euro Zone Services PMI for Sep 2023 – Forecast 48.4, versus 48.4 previous.
- UK Services PMI for Sep 2023 – Forecast 47.2, versus 47.2 previous.
- US Services PMI for Sep 2023 – Forecast 50.2, versus 50.2 previous.
- US ISM Services PMI for Sep 2023 – Forecast 53.6, versus 54.5 previous.
