Alex Dudov
In the current session, the price of gold is lower as XAU/USD moves toward $4,690. It is evident that the metal did not remain at the previous levels of $4,740 - $4,750 because many participants sold the asset, which caused the price to drop quickly.
By reviewing data from TradingView, the chart shows that the price is moving down during the day. It is clear that the price is creating lower peaks and lower troughs after the first period of selling. When the price tried to rise for a short time, it was met with more selling and this confirms that the downward trend is strong.
At this time gold is at $4,691, which is a price that is slightly higher than a significant area where buyers often appear.
To start the session, the price fell rapidly while many trades occurred, which shows that many people are selling. If the price tried to become steady later, the increases were small and resulted in more selling.
The structure is now as follows:
- There is a series of lower peaks.
- There are many times when the price cannot rise above $4,710 - $4,720.
- There is constant movement toward the lowest prices of the session.
As this pattern continues, it is likely that sellers are still the primary influence in the short term.
For traders a supportive price area exists at $4,685 - $4,690 where the price is currently staying in a narrow range. If the price moves below this area with strength, it is possible that it will reach $4,650.
On the higher side, a level that limits upward movement is at $4,710. Due to the earlier selling, a larger area where many people want to sell is near $4,730 - $4,750.
Alex Dudov
