GOLD: Lost some substance 🔴 The current gold analysis on September 10, 23 🔴 Chart analysis, weekly outlook and trading setups

ABSTRACT: The daily chart cannot currently be interpreted as bullish. The precious metal must avoid slipping below the SMA200 and establishing itself below this average line. If this is successful, then on the other hand it is important to get above the SMA50 as quickly as possible and to settle above this line at the end of the day. If this were to succeed, it would still be essential for upward momentum to emerge. This should have a pronounced character and bring the precious metal back into the $1,958/62 range.

• Current Gold analysis on September 10, 2023: Chart analysis, weekly outlook, trading setups and more – for active day traders

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Gold review: (09/04/2023 – 09/08/2023)

gold was trading at $1,944.6 on Monday morning. The precious metal was 29.10 US dollars above the level on Monday morning of the previous week and 4.20 US dollars above the weekly closing on Friday evening. Gold reached its weekly high on Monday morning. Things gradually went downhill from here. Smaller recoveries were immediately sold off afterwards. A dynamic upward movement occurred on Wednesday afternoon, but was immediately sold off again. The precious metal moved into a larger sideways box from Wednesday evening. During early trading on Friday morning, prices rose moderately. On Friday afternoon it went up again to almost $1,930, but this movement had no substance either. It was immediately sold off afterwards. The precious metal was lost $1,919.0 from weekly trading.

The weekly high is below the previous week’s level, while the weekly low was formatted above the previous week’s level. After two weeks of gains, a loss was reported again this trading week – around 1% minus on a weekly basis. The range was slightly smaller than the week before and was also below the annual average.

On the upside, when we crossed the $1,945.1 mark, we expected that gold could approach our next target at $1,947.7. This movement has stopped, the starting goal has not been achieved, The setup didn’t work. The setbacks did not quite reach our next target on the downside at $1,914.8, falling below $1,915.7.

Gold – What could happen next:

Gold resistors

• 1,919.7
• 1,920.7
• 1,922.6
• 1,923.3
• 1,926.8
• 1,931.9
• 1,932.3
• 1,933.0
• 1,934.8
• 1,936.9
• 1,938.7
• 1,947.9

Gold supports

• 1,918.1
• 1,915.7
• 1,912.2
• 1,904.1
• 1,902.0
• 1,895.7
• 1,889.2
• 1,874.2

Gold chart check – viewing in the daily / 4h chart:

DAILY

The daily chart shows that gold has lost some of its substance in the last few trading days. As a result of the setbacks, it went back to the SMA200 (currently at 1,919.7 US dollars) / SMA20 (currently at 1,915.7 US dollars). The precious metal was able to stabilize in the orbit of these two lines. That is the good news. The not-so-good news is that it didn’t break much above the SMA50 (currently at $1,931.9) either.

The daily chart cannot currently be interpreted as bullish. The precious metal must avoid slipping below the SMA200 and establishing itself below this average line. If this is successful, then on the other hand it is important to get above the SMA50 as quickly as possible and to settle above this line at the end of the day. If this were to succeed, it would still be essential for upward momentum to emerge. This should have a pronounced character and bring the precious metal back into the $1,958/62 range.

However, if the move fails and gold settles below the SMA200 at the end of the day, the daily chart turns bearish. Further levies would be conceivable and possible, with the prospect of reaching the range of 1,890/87 US dollars and then higher up to 1,870/68 US dollars.

• Classification of higher-level chart image, forecast (Daily chart): neutral/bearish

View in the 4h chart:

The precious metal initially fell below the SMA50 (currently at 1,933.0 US dollars) / SMA200 (currently at 1,926.8 US dollars). It can be seen in the chart that there were attempts to get back above the SMA200, but were ultimately unsuccessful. At the end of the week it went up and above the SMA200 again, but that was it. This candle was immediately sold off afterwards. In the evening, the precious metal established itself below the SMA20 (currently at 1,922.6 US dollars).

This means that the 4h chart has turned bearish. As long as gold is trading below the SMA20, further sales are conceivable and possible that could achieve the start-up targets that were defined in the daily analysis.

If gold can move above the SMA20 again, it will then be important to go directly to and above the SMA200. The movements in the last trading week have shown that this is anything but easy. Even if gold can push above the SMA200, the precious metal still has to go above the SMA50 and settle above it. Whether this move will materialize remains to be seen.

• Classification of short-term chart image, forecast (4h): bearish

Conclusion: Gold must establish itself above the 50-day line by the end of the day. If this succeeds, it could continue upwards towards 1,960/63 US dollars and, above all, towards 1,990/92 US dollars. On the other hand, if gold settles below the 200-day line, further declines could occur, which could reach the $1,880 range.

• Probability of a bull scenario based on our setup: 45%
• Probability of a bear scenario based on our setup: 55%

Assessment for the new gold trading week:

Long setup: Gold could initially try to stay above $1,919.0. If this succeeds, it could continue upwards to our next approach targets at 1,920.7, at 1,922.6, at 1,923.3, at 1,924.8, at 1,926.8, at 1,927.5, at 1,929.5, at 1,931 .9, at 1,932.3 and 1,934.8 US dollars respectively. Above the $1,934.8 level, our next target targets would be $1,936.9, 1,938.7, 1,939.9, 1,941.7, 1,943.5 and $1,945.8, respectively.

Short setup: If gold cannot stay above the 1,919.0 US dollar mark, the precious metal could initially reach our next target levels at 1,918.1, 1,916.9, 1,915.7, 1,914.8 and then 1,912.2 US dollars run. Below the $1,912.2 mark, our next target would be 1,909.7, 1,906.6, 1,904.1, 1,902.0, 1,899.7, 1,897.1, 1,895.6, 1,893 .1, can be found at 1,892.01, at 1,890.4 and at 1,889.2 US dollars, respectively.

Overarching expected gold trend in week 37/2023:

source: xStation5 from XTB

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