- Gold has fallen 0.67% lower on Tuesday despite lukewarm risk sentiment.
- USD 1750 per troy ounce seemed a step too far for the bulls for now.
XAU/USD 1-hour chart
In a pretty lacklustre session for news flow, the price of gold has dipped. From a technical point of view, there are lots of reasons for the price drop. What is interesting is that despite the tepid risk sentiment and the dollar dropping, gold still took a dive.
Looking closer at the technicals, there was a divergence on the hourly chart highlighted in red. The price made a higher high wave while the Relative Strength Index signal line made a lower high wave. This is often a signal that a move higher could be running out of steam and in this case, it worked well.
The price also dipped back below the 55 Exponential Moving Average and is now testing the 200 Simple Moving Average. The MACD histogram is also crossing to the downside so on the hourly chart there seems to be lots of bearish signals.
The price could find support at the blue trendline as internal trendlines often act as support and resistance zones. The key level, however, is the low point on the chart of 1693.78. If this level breaks it could be a sign that the price could be heading to lower levels on the higher timeframes.
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Additional levels
