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TECHNICAL ANALYSIS OF GOLD 02 NOVEMBER 2022

TECHNICAL ANALYSIS OF GOLD 02 NOVEMBER 2022

Even though a bullish extension is not yet in sight, XAUUSD made a nice rebound. The 38.2% retracement of the $1,729.54/$1,617.12 drop, or $1,659.90, is a key Fibonacci barrier level that the daily chart reveals the advance paused before. In addition, the 20 SMA sped up its decline and is now hovering near the indicated Fibonacci resistance, while the longer moving averages are still well above the price at hand. Technical indications have risen slightly in the meantime, but they are still evolving inside negative levels and lack significant momentum. Despite XAUUSD finding buyers near the immediate Fibonacci support level at $1,643.60, the upward potential also appears limited on the 4-hour chart. The pair is currently trading below the lengthier SMAs and near a bearish 20 SMA, which tilts the risk downward. The RSI indicator turned sharply lower and is now hovering around 48, while the Momentum indicator is moving below its midline. A retest of the year low at $1,614.81 can occur if the price declines steadily below the previously noted static support level.