XAUUSD – Near $1,700 psychological level

<p><strong>XAUUSD,</strong> H4 – Gold price continued to fall for the third day as the market began to return to accept more risks this week. However, the Asian stock market is not clear today, with Nikkei +0.70% and the Thai morning SET closed -0.06% while the Hang Seng dropped more than -1% due to protests in Hong Kong regarding a new security law.</p>
<p>Development of the drug for Covid-19 by the American company Novavax is still unclear. The latest news was the announcement  that it was beginning to register participants for the first human vaccine study. Meanwhile, the plan for approval of the Fujigan Avigan drug developed by the Japanese government has been suspended until its security and efficiency is confirmed.</p>
<p>Regarding the price of gold, at this time, there is a technical standpoint that is a fairly clear downtrend. After seeing the bearish divergence in the Daily  time frame since the end of last week,  followed by yesterday’s  break through of the trend line, the price has continued  heading down to test the <strong>1,700</strong> psychological support. If this is breached, then the next support zone will be at the <strong>1,680</strong> zone.</p>
<p>In the H4 time frame, price broke through the trend line (dotted line) down to test the key support at the 200-EMA, which is the same zone as the <strong>1,700</strong> psychological support when combined with the unclear Asian stock market view today. This may strengthen the support in this area, which may send gold prices to bounce back to the <strong>1,722</strong> zone  again. However, for now we see a downtrend  as MACD is still sinking in the negative territory.</p>
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<p><strong>Chayut Vachirathanakit<br />
Market Analyst – HF Educational Office – Thailand</strong></p>
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