FX.co ★ Gold analysis for August 04, 2023 - Potential for the further drop

Technical analysis:

Gold has been trading in the sideways range at the price of $1.934 but in the downside trending condition and potential breakout of the consolidation.

Due to the breakout of the tight triangle in the background and the strong downside momentum in the background, I see potential for the further drop towards lower reference level.

Downside objective is set at the price of $1.915

Stochastic oscillator is showing fresh downside cross, which is another good sign for the further downside movement.

Key resistance is set at the price of $1.943