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Commodity
by FXOpen on May 20th, 2019

Gold price outlook: the XAU/USD pair is currently consolidating losses after a sharp decline

The precious metal continued a sharp decline last week from levels just above the key psychological mark of $1,300 and remained under some selling pressure for the fifth session in a row on Monday.

The bearish pressure remained unchanged, despite the new wave of global risk-aversion trade caused by the news that China is considering the possibility of suspending business with suppliers who agreed to stop supplying Huawei.

Gold price technical analysis

Gold price failed to stay above the $1,295 and $1,294 support levels against the US Dollar. The price started a fresh decline and broke the key $1,284 support level to enter a bearish zone.

Gold-Price-Chart

The recent decline was such that the price even settled below the $1,284 support and 50 hourly simple moving average. The price traded towards the $1,275 level and a swing low was formed at $1,274.98.

The price is currently consolidating losses, with an immediate resistance near $1,278 and the 23.6% Fib retracement level of the last decline from the $1,288 high to $1,274 low.

There is also a major bearish trend line forming with resistance at $1,280 on the same chart. Therefore, as long as the price is below the $1,278 and $1,280 resistance levels, there is a risk of more losses in the near term.

By FXOpen

FXOpen is a Forex and Cryptocurrency broker founded in 2005 by a group of traders. With over 10 years of experience, the company has established itself as a major Forex broker that continues to expand rapidly across the globe. FXOpen offers the MT4 and MT5 Forex trading platform with a wide range of trading instruments including 100+ FX, CFDs, Indices and Cryptocurrency markets. FXOpen also provides its own PAMM technology allowing clients to benefit from the strategies of professional traders with a proven track record of successful trading. The FXOpen Group also includes the ASIC regulated FXOpen AU in Perth Australia and the London-based FXOpen UK that is regulated by the FCA.

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