GOLD is completing the trading week near the area of 1768. XAU/USD quotes continue to move as part of the correction and the formation of the ”Head and Shoulders” pattern. Moving averages indicate a bearish trend for Gold. Prices have broken down the area between the signal lines, which indicates pressure from buyers and a potential continuation of the price rise. At the moment, we should expect an attempt to develop a decline in prices and a test of the support level near the 1720 area. Further, the continued growth of the GOLD price with a potential target above the level of 2075.
GOLD Price Forecast and Weekly Analysis October 18 — 22, 2021
An additional signal in favor of a rise in quotations and prices for GOLD in the current trading week October 18 — 22, 2021 will be a test of the trend line on the relative strength index (RSI), as we see, prices are pushing up after the test of this line. The second signal will be a rebound from the lower border of the “Head and Shoulders” pattern. Cancellation of the growth option for XAU/USD quotes will be a fall and a breakdown of the area of 1655. This will indicate a breakdown of the support level and a continued fall in GOLD prices with a target below 1565. 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 1875, which will indicate completion of the formation of the “Head and Shoulders” reversal pattern and the beginning of its development.
GOLD Price Forecast and Weekly Analysis October 18 — 22, 2021 assumes an attempt to test the support level near the 1720 area. Then, the GOLD prices will continue to rise with a target above the level of 2075. 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 1655. This will indicate a continued decline in quotations to the area below the level of 1565.
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