Gold price prediction: XAU/USD falls from yesterday’s weekly high

technical analysis

• The precious mettle fails in continuing the upside trend after rejection on two consecutive occasions from a critical resistance.
• The Moving Average Indicator line of the 50-period crossed over below the 100-period, indicating more decline potential.
• XAU/USD clings close to the critical support level of 1824.37.

The yellow metal continued its decline today during the early European session. The XAU/USD dropped to approximately 244 pips after reaching its weekly high yesterday during the opening of the New York session. At the time of writing, gold was trading at 1,826.43, a daily increase of 3.80, or 0.21 percent.

However, XAU/USD trades close to the current week’s low. The gold price found a safe vicinity after hitting the weekly low of 1822.45, which held the yellow metal from more losses on Wednesday. Furthermore, the price couldn’t preserve the breach that occurred early today. As a result, the price clings to the support level of 1824.37.

The Moving Average of 50-periods crossed over below the 100-periods on the four-hour timeframe, which indicates more downside potential in the not-so-far future. On the other hand, the Relative Strength Index (RSI) holds in the natural zone…