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Gold bounce from the lower boundaries of the descending channel

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With the start of the new month, gold ended its decline near the borders of the descending channel , then gold prices recovered from their lowest level in 5 months due to the weakening of the US dollar .

As a safe haven and store of value, gold prices are particularly sensitive to the US dollar . And since Pfizer first announced its vaccine on November 9, gold prices have fallen by more than 8%.

Technically, gold prices broke the key support at $ 1,800 last week and thus opened the door for further decline, and has already reached the target level in our previous analyzes at $ 1775. Of course, the general trend appears to be bearish , as suggested by the successive high-low and low-low.

In the short term, the bulls are now challenging the $ 1,818 resistance level , which is the intersection of the 38.2% Fibonacci retracement of the downward move from Nov 17 to Oct 30. In the event of stability above the aforementioned level, it is possible to target the level of 1850: $ 1860 next. From it, we may see additional selling opportunities if the price fails to breach it, but it is too early to expect that now. The bulls are currently protecting the level of 1811 countries to prevent it from reaching $ 1750.

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