Gold is gradually approaching the official target 18/8/2023

Gold prices reached the official target station during the previous technical report at 1885, recording its lowest level at $1885 per ounce.

On the technical side, prices tried to take advantage of the support represented by the 1885 target to achieve some bullish rebound. However, it is still limited, and by looking at the 4-hour chart, with the continuation of the negative intersection of the simple moving averages, which constitutes a substantial obstacle against gold prices, and continues to exert negative pressure on the price. From above, the negative impact of the bearish technical pattern continues.

From here, with the stability of intraday trading below 1913, the previously broken support, and now converted to the Fibonacci correction resistance level 61.80%, the bearish scenario remains the most favorable during today’s session, continuing towards the rest of the targets of the last report at 1885, and the losses extend towards, knowing that the 1875 level has become a major expected target.

The upside move and the price’s consolidation with the closing of the 4-hour candlestick above 1913, postpones the chances of a decline, and gold prices may witness a temporary recovery with the aim of re-testing 1922 and 1929 before the start of the decline again.

Note: Stochastic is trying to provide positive crossover signals, but the signals are still weak.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 1885.00	R1: 1903.00
S2: 1875.00	R2: 1913.00
S3: 1867.00	R3:  1922.00