Gold Price Analysis: XAU/USD’s upside capped by bearish 10-day SMA
- Gold remains in bearish territory below the 10-day SMA.
- A break below Wednesday’s low could attract stronger selling pressure.
Gold is again struggling to take out the descending or bearish 10-day simple moving average (SMA), having failed to keep gains above the SMA hurdle on Wednesday.
The metal tested the 10-day SMA at $1,891 a few minutes ago and is now trading near $1,888 per ounce.
A repeated rejection at the bearish 10-day SMA has boosted risk in favor of a drop to Wednesday’s low of $1,881. A break lower would confirm an end of the bounce from the Sept. 28 low of $1,848 and open the doors for a re-test of that level.
On the higher side, the resistance of the trendline falling from Aug. 7 and Sept. 16 highs is the level to beat for the bulls. At press time, the bearish trendline is located at $1,935, and the metal is trading at $1,889 per ounce.
Daily chart
Trend: Bearish