Short

💡 XAUUSD: The downward momentum has not stopped

Updated

Gold experienced its third consecutive drop yesterday, with a significant decrease in price. The daily bar, referred to as D1, exhibited a substantial decline and closed near its lowest point. It concluded above the bottom of the previous D1 bar, indicating robust selling pressure. Furthermore, yesterday's D1 bar closed below the bottom of the most recent upward movement, which may serve as a catalyst for a further decline in D1 gold prices.

The hourly trend for gold, represented by H1, maintained its downward trajectory, reaching a new low in price yesterday. Both daily and hourly timeframes favor a continued decrease, making today's H1 gold trend one to watch for potential selling opportunities.

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The gold market witnessed its third consecutive decline as investors looked for new signals about the US Central Bank's interest rate stance.

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Daniel Ghali, commodity strategist at TD Securities, said that traders will start looking at economic data and potential actions from the US Central Bank and gold will react based on whatever data brings. According to this expert, it is difficult for gold to gain momentum if data does not show economic weakness.

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You need to wait for the price to return to the nearest resistance and look for trading signals. Please pay attention to the resistance area around 1970. This is the area of supply and demand imbalance as well as the bottom area before the market broke, so we can wait for the price to return to this area and look for a signal to sell.

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Gold cannot penetrate resistance yet

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💡 GOLD: Gold has not yet broken the above resistance

Stone_Haven

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