Gold will drop at the end of the week!

The price of gold is hovering near a seven-week low due to the recent downtrend. The strength of the USD is causing this, as optimism about the United States debt ceiling talks and hawkish Federal Reserve comments are supporting the currency.

Additionally, recent challenges to US debt limit extension and a US-Taiwan trade deal are causing the XAU/USD price to decline. The XAU/USD has been declining for three consecutive days and is currently below its 20 Simple Moving Average.

Technical indicators show a prevailing selling interest and the XAU/USD is oversold in the near term. In the 4-hour chart, technical indicators are at extreme levels but do not anticipate a potential bounce. The bright metal is trading far below all its moving averages, with the 20 SMA heading south below the longer ones.

SELL XAUUSD zone 1970 - 1973

Stoploss 1977
Take profit 1: 1965
Take profit 2: 1960
Take profit 3: 1950

BUY XAUUSD zone 1950 - 1946

Stoploss 1942
Take profit 1: 1955
Take profit 2: 1960
Take profit 3: 1970