Market Analysis – September 22

Gold (XAUUSD) buyers face resistance as they are experiencing downward pressure for the second time this month. The market took a downturn as buyers could not breach the critical 1946.830 key level. This inability to make substantial progress can be traced back to this month when buyers lost their momentum.

Gold (XAUUSD) Key Level

Resistance Zones: 2064.800, 1986.610
Support Zones: 1946.830, 1798.180

Gold (XAUUSD) Long-Term Trend: Bearish

Sell traders flexed their muscles after repelling buyers at the 1986.610 market level. This led to a decline in buying volatility. This shift in market sentiment has driven the yellow metal lower, with the potential for a further decline. The daily chart’s Bollinger Bands indicate a compressed stage. It signals decreased price volatility. It also explains the need for increased sell-trader strength to breach the critical support zone at 1886.480.

The Price Oscillator indicator has not shown a clear sign of increased volatility in the market. This suggests that the current conditions may persist. Additionally, the Relative Strength Index (RSI) has crossed into sell-strength territory at 48.84. It further underlines the steady dominance of sell traders in the market.

Gold (XAUUSD) Short-Term Trend: Bearish

On the 4-hour chart, there is a need for increased price volatility to facilitate a breakthrough. Traders are expected to make strategic moves this week. However, the attention is still focused on sell traders as they aim for the critical 1886.480 key level. Investors should closely survey as Gold navigates this phase of price consolidation and potential breakout.