- Gold is trading just 0.10% higher after trading higher earlier on Monday.
- The could be heading to the channel low on the chart below.
Gold 4-hour chart
XAU/USD had been positive earlier in the session but there has been a turnaround in risk sentiment and stocks and gold has sold off during the late hours of the US session. The DXY has also recovered somewhat and is now trades at 96.51 after being as low as 96.27, 10-year treasury yields have also fallen and it seems like there is a flight to fixed income.
Looking at the chart below, there is a clear channel formation but it is very steep. The first support will be the USD 1800 per troy ounce level but beyond that, the channel low could be next up. Any break of the channel low could take the price to the next support near USD 1787.13 per ounce.
The MACD indicator is mixed as the signal lines are still above the midpoint but the histogram is in the red. The Relative Strength Index is just hanging at the 50 line and a dip below could be a bearish signal. The 50 line could be breached if the price breaks the consolidation low of USD 1794.58 per ounce.
Longer-term the price is in a very strong uptrend. This retracement could just be a small blip as the price makes its way toward USD 2000 per troy ounce or the all-time high at USD 1920.94 per ounce.
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Additional levels
