Gold Price Decline Further Below $1,625, Federal Reserve Chair Jerome Powell’s Speech Next

Key Take-Aways

Below the $1,650 level, gold prices continued to decline.

On the 4-hours chart, a significant negative trend line is developing with resistance close to $1,650.

GBP/USD and EUR/USD may begin a new downward trend.

The USD/JPY pair may surpass its previous high at 145.90 and move higher.

 Technical Analysis of Gold

Below the $1,688 resistance level in relation to the US dollar, the price of gold stayed in a bearish zone. Price fell beneath the $1,665 support level and entered a negative area.

price extended losses below the $1,650 support, the 100 simple moving average (red, 4-hours), and the 200 simple moving average, according to the XAU/USD 4-hours chart (green, 4-hours).

Even lower, trading as low as $1,620, the price even briefly soared below the $1,625 mark. It is currently accumulating losses above $1,620. On the upside, buyers may be present close to the $1,646 mark. On the same chart, a significant negative trend line is also developing, with resistance located close to $1,650.

Near the $1,662 mark, there is the next significant barrier. The price may move toward the $1,688 barrier level if there are any additional increases.

An early support for the downside is located close to the $1,620 mark. Near $1,600 is the next significant support, below which the price may continue to decline quickly. In the aforementioned scenario, the price might drop to around $1,580.

Regarding the EUR/USD pair, resistance is present at the 0.9680 and 0.9700 levels. The pair may drop under 0.9550 if the bears continue to exert pressure.

Economic News To Trade Today

US Pending Home Sales for August 2022 (YoY) are expected to decline by 1.4% as opposed to the previous -1.0%.

Jerome Powell, Chair of the Federal Reserve, speaks.

Amogo Solomon is a Broker-Dealer/Market Research analyst and writer in ACT Brokers with a background in Computer Science, Data Analytics, and Forex Broker Dealing. He specializes in Forex Dealing, markets Analysis, Currency research, forex fundamental and technical analysis, and Monitoring of Forex trends, Stocks, Equities, Cryptos, and Commodities. He possesses strong technical and analytical skills and is well known for his entertaining and informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Computer Science and Nanodegree in Programming for Data Science Enterprise.