Gold hopes to snap losing streak this week but the technical picture remains poor

<p>Gold has fallen in each of the last four days this week and looks set for a fourth straight weekly decline as well. It's not been pretty for gold prices since the middle of last month, upon testing resistance around $1,983. Since then, we've seen price fall back below its 100-day moving average (red line) and then its 200-day moving average (blue line) this week:</p><p>There is a slight reprieve today but that owes much to falling bond yields, as seen <a href="https://www.forexlive.com/news/bond-bulls-make-a-bit-of-a-stand-for-now-20230818/" target="_blank" rel="follow">here</a>. But in the bigger picture, things are still not looking good for gold at the moment.</p><p>The drop below the key daily moving averages puts sellers in control and price is threatening to break the June low to close out the week. If so, there is quite a big air pocket between that and support all the way down near the $1,800 mark.</p><p>As mentioned before, I'd definitely still keep a more bullish structural view on gold but timing is everything. Right now, with bond yields racing higher and potentially threatening a breakout, it isn't gold's time to shine just yet.</p><p>The policy pivot by major central banks is the key driver for the long-term outlook but for now, gold bulls might have to wait for price to pull back further before coming back up again.</p>

This article was written by Justin Low at www.forexlive.com.