Gold Price At Risk Of Additional Losses

Key levels:
Resistance – 1780, 1790, 1835
Support – 1760,1750, 1720

This past week, gold saw a bearish reaction below the $1,800 support against the US Dollar. The price traded below the $1,780 support level to move into a bearish zone. 

The 4-hours chart of XAU/USD indicates that the price even traded below the $1,775 support level. There was a close below the $1,800 level, the 200 simple moving average (green, 4-hours), and the 100 simple moving average (red, 4-hours). 

A low was formed near $1,761 and is currently consolidating. An immediate resistance is near the $1,780 level. 

The next major resistance is near the $1,790 level and the 100 SMA. There is also a key bearish trend line forming with resistance near $1,790 on the same chart. The trend line is also close to the 23.6% Fib retracement level of the downward move from the $1,877 swing high to $1,761 low. 

A clear break above $1,790 could send the price toward the $1,820 resistance zone in the near term. The next key resistance is near the $1,835 level. 

On the downside, the price might remain supported near $1,760. The main support is near $1,750, below which there is a risk of a break below $1,720.