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XAUUSD : 1178 and 1037 Seems to be the Next Target

XAUUSD : 4 Hour Chart

Gold is following a descending triangle trend on the 4 hour chart with support at 1208.10 and resistance from the falling resistance trend line. Also currently it seems like, the commodity is testing resistance from the 50 day SMA. Today it found some support at 1215.20 after declining from the falling resistance trend line. The gains still seems limited as the moving averages are also signaling a downtrend continuation.

US dollar continues to be supported despite missed Home Sale data in August. The official data showed that the number of Americans who signed for the contract to buy previously owned homes fell last month but the contract signing remain at the second highest level of past year. 

Expectations for early interest rate increase is considered as bearish for Gold and the positive growth of US economy continues to show that Gold might now reach record lows.

XAUUSD : Monthly Chart

On the monthly chart we can see the next support target levels to which the commodity may decline. The next nearest support target is at 1191.78 and if the commodity continues to decline below it the target level is at 1037.33.