CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money before trading CFDs.

Will the Gold Price Continue to Fall?

May 11, 2022

  • The Gold Price started a fresh decline after breaking below $1,850.
  • Bearish trend line has formed resistance near $1,875.

The Gold, US Dollar price failed to break above resistance at $1,920. XAU/USD broke below support at $1,900 and has continued to fall.

XAU/USD 4-Hour Chart (Trend: BEARISH)

On the 4-hour chart, the XAU/USD price started a fresh decline after breaking below support at $1,880. The quote also broke below the $1,865 level, and continues to trade well below both the 100-MA (red) and 200-MA (blue). The quote is currently consolidating near the $1,835 level.

If the price turns bullish, the quote will first need to test resistance near $1,850. Above this there is further resistance near $1,875. There is also a key bearish trend line forming resistance near $1,875. A break above this trend line could trigger momentum, taking the quote back up towards the $1,900 level and the 100-MA (red).

In contrast, if the price continues bearish, the quote will first need to test support near $1,835. Below this there is further support near the $1,820 level. A break below this could see the quote drop down towards $1,800, a level last seen on February 4th 2022.

Open an Account. Get started in less than 5 minutes