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Gold Price Analysis: XAU/USD drops sharply to $1550/oz

  • Gold is trading in the New York session below the 1558/1555 resistance zone.
  • The level to beat for bears is the 1550 support.
 

Gold daily chart

 
XAU/USD is trading in a bull trend above its main daily simple moving averages (SMAs). After a failure at the 1600 mark earlier in the month, the metal is now in consolidation mode.
 

Gold four-hour chart

 
Gold is retracing down challenging the 1550 support and the 100 SMA on the four-hour chart. If the markets break below the 1550 level it can continue to decline towards the 1537 support level. 
 
 

Gold 30-minute chart

 
The market is trading below the main SMAs suggesting a bearish momentum in the near term. The bullish bias got invalidated below the 1558/1555 price zone as it lead to a deeper retracement towards the 1550 level as expected. The market could remain under selling pressure in the near term with a hard time to recover above the 1558/1555 price zone. 
 
 

Additional key levels

 

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