Gold prices are falling again on Wednesday for the fifth consecutive day. The recovery toward $1800 proved to be short-lived, and XAU/USD turned back to the downside. Recently bottomed at $1778, a hundred dollars below last week’s top. Personal Income and Spending rose more than expected in October, initial jobless claims dropped to the lowest since 1969, and consumer sentiment rebounded modestly. On the negative front, Q3 GDP data was revised from 2.2% to 2.1%; Durable Goods Orders fell 0.5%, and New Home Sales rose to 745K (annual rate) below the 800K expected.
Following that, on a weekly chart, the gold price returned and remained in the triangle formed from August 2020. It will be interesting to see how the price develops in the coming weeks and whether it will test the lower support or the triangle's upper resistance again and whether it will breakthrough. It looks that the bears are still in control, as the bright metal is barely correcting extreme oversold conditions. Gold remains below all of its moving averages. And if the price continues to fall, it is possible to test the lower triangle support at around $1750.00. If this support is broken, it is possible to see price levels around $1725.00 or lower around $1680.00.
On the other side, if the price is already low enough and activates the bulls on the market, we can see a test again on the triangle's upper resistance around $1835.00. If the price breakthrough at that level, the experts say this will attract the attention of many buyers on the market. We can see the test of $1870.00 zone or higher around $1915.00. If the price does not stop at these levels and inflation continues to rise in the coming months, it is possible to see levels above $1950.00 per troy ounce or higher on the North to the psychological levels around $2000.00.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carry a high-risk level. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and such sites. Furthermore, one understands that the company carries zero influence over transactions, needs, and trading signals. Therefore, it cannot be held liable nor guarantee any profits or losses.
Following that, on a weekly chart, the gold price returned and remained in the triangle formed from August 2020. It will be interesting to see how the price develops in the coming weeks and whether it will test the lower support or the triangle's upper resistance again and whether it will breakthrough. It looks that the bears are still in control, as the bright metal is barely correcting extreme oversold conditions. Gold remains below all of its moving averages. And if the price continues to fall, it is possible to test the lower triangle support at around $1750.00. If this support is broken, it is possible to see price levels around $1725.00 or lower around $1680.00.
On the other side, if the price is already low enough and activates the bulls on the market, we can see a test again on the triangle's upper resistance around $1835.00. If the price breakthrough at that level, the experts say this will attract the attention of many buyers on the market. We can see the test of $1870.00 zone or higher around $1915.00. If the price does not stop at these levels and inflation continues to rise in the coming months, it is possible to see levels above $1950.00 per troy ounce or higher on the North to the psychological levels around $2000.00.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carry a high-risk level. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and such sites. Furthermore, one understands that the company carries zero influence over transactions, needs, and trading signals. Therefore, it cannot be held liable nor guarantee any profits or losses.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.