GOLD → The price will break 1914 and start another decline

25 Agu 2023

XAUUSD is declining amid the strengthening of the dollar. DXY finally consolidates above the key support of 103 and starts upwards to 105-107, which gives a new kick to gold for the fall

On the chart we see the price stopping in the area of 1914-1918 and the price forms a retest of 1914 after a false breakout - a strong enough syschgnal that prepares us for a possible fall in the value of the metal. If the price breaks 1914 and forms a consolidation below the level, it will give us a strong signal that the price will continue its fall to 1900-1885 after a shakeout in the form of a rally to 1918.
A stronger dollar means that no one will cut rates anytime soon as the market still sees strong inflation.
Moving averages are acting as support but MA-50 may be broken soon which would open a new corridor for price

Support levels: MA-50, 1914, 1911
Resistance levels: 1918
I expect a short setup and the development of the situation in the format of price decline to 1900, but something against the scenario can always happen. If the price breaks 1918, it will start to rise to 1925.

Regards R. Linda!