GOLD is completing the trading week near the area of 1778. XAU/USD quotes continue to move as part of the correction and the formation of a “Double Bottom” reversal pattern. Moving averages indicate a bullish trend for Gold. However, prices have broken down the area between the signal lines, which indicates pressure from sellers and a potential continuation of the fall. At the moment, we should expect an attempt to develop a price decline and a test of the support level near the 1705 area. Further, the GOLD price will continue to rise with a potential target above the level of 1965.
GOLD Price Forecast and Weekly Analysis August 16 — 20, 2021
An additional signal in favor of a rise in quotations and prices for GOLD in the current trading week August 16 — 20, 2021 will be a test of the trend line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the bullish channel. Cancellation of the growth option for XAU/USD quotes will be a fall and a breakdown of the area of 1675. This will indicate a breakdown of the support level and a continued fall in GOLD prices with a target below 1595. Confirmation of the growth in the value of the asset will be a breakdown of the resistance area and closing of quotes above the level of 1965, which will indicate completion of the formation of the “Double Bottom” reversal pattern and the beginning of its development.
GOLD Price Forecast and Weekly Analysis August 16 — 20, 2021 assumes an attempt to test the support level near the 1705 area. Then, the GOLD prices will continue to rise with a target above the level of 1965. A test of the trend line on the relative strength index (RSI) will be in favor of the rise in quotes. Cancellation of the GOLD growth option will be a fall and a breakdown of the level of 1675. This will indicate a continued decline in quotations to the area below the level of 1595.
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