XAU/USD 240 Minute Chart Analysis – 2023-09-15

Currently, the price of gold is following a bearish trend but is trading within a defined range at the 1915 level after the ECB’s Interest Rate Decision. The European Central Bank (ECB) has made a significant move by increasing interest rates to a record level. This decision comes amidst careful consideration of various factors, including the inflation outlook, economic and financial data, underlying inflation trends, and the effectiveness of monetary policy transmission.

This suggests that gold has been experiencing range bound fluctuations in value, but it has not significantly moved away from the 1915 mark.

One key indicator of this bearish sentiment is that gold’s price is below both the 200-day and 50-day moving averages. This indicates a bearish sentiment in the market, as these moving averages are commonly used to gauge the overall direction of an asset’s price.

Scenario 1: In this scenario, the price of gold may decline from its current level, potentially heading towards the support levels at 1911. If the bearish sentiment continues, there could be further downward momentum, possibly reaching the 1908 level. If the bearish trend persists, gold may even drop to levels of 1905 and 1901, with 1895 serving as a significant support level. These support levels are important as they can act as potential turning points or areas where buyers may step in.

Scenario 2: Conversely, if the price of gold moves higher from its current level, it could test the resistance level of 1919. If this resistance is broken, the next significant obstacle would be testing the 1921 level. Beyond that, further resistance levels to monitor include 1924.50, which acts as a major barrier preventing further upward movement.

In terms of short-term momentum, the market is currently exhibiting a bearish bias but is also consolidating.