Gold Prices Slide: Unveiling Key Support Levels Amidst Persistent Downtrend

Gold Forecast Video for 17.08.23 by Bruce Powers

Downward pressure in gold continued today as it dipped below Tuesday’s low of 1,896. This is the eighth day in a row of lower daily highs and lower daily lows. Earlier in the session gold rallied to test the 200-Day EMA as support, finding resistance at the day’s high of 1,907. The 200-Day line is at 1,908. Today was the first day that the day’s full price range occurs below the 200-Day EMA.

Bearish Signals Amplified as 200-Day Line Acts as Resistance

The downtrend retracement off recent swing highs remains well intact and gold looks to be heading to the swing low support area from late-June at 1,893. Lower prices look likely to follow. Today’s price behavior relative to the 200-Day line is classic bearish behavior pointing to a continuation of the downtrend. The 200-Day line has been an area of possible support with gold breaking below it two days ago. It was successfully tested today as resistance. The subsequent breakdown to new trend lows later in the session confirms the bearish behavior. A daily close below the June swing low will further confirm the bear trend.

Drop Below 10-Month EMA (1,901) Earlier This Week is Bearish

At the beginning of the week gold triggered a bearish monthly signal as it fell below and subsequently closed below July’s low of 1,903Further, the 10-Month EMA (1,901) has served as an area of support since gold went back above it last December. Since there have been no subsequent signs of strength the bearish signal looks valid. It provides further supporting evidence for a deeper retracement.

Potential Support Zones at 1,892, 1,871-1,864, and 1,839-1,834

There are several potential support zones marked on the chart to provide a guide if gold keeps dropping. The first is around 1,892, which is marked with a red horizontal line on the chart. That price area was recognized by the market a couple times over the past two years, and it is very close to where resistance was seen at the August 2011 peak. Lower down are two areas of Fibonacci confluence where support might be seen. The first starts from around 1,871 and goes to 1,864. It includes a Fibonacci retracement and two extensions. Price levels from the same measures make up the second Fibonacci price zone. It goes from 1,839 to around 1,834.

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