Gold Weekly Analysis: Gold breaks below the trendline support.

Gold has been falling in the last eight days. The Gold price has closed below the trend line support, and it is dropping from near the Gold All-Time Swing High Rate from the previous week.

Since the gold price has closed below the trend line support, there is no doubt that it has technically gone into bearish mode. Though it is not the right time to say that the gold will remain bearish in the next week, it has the most possibility to stay gold in bearish mode unless we get a piece of negative news from the Russia-Ukraine issues.

The biggest reason for the gold drop since the weekend of last week is that both Russia and Ukraine are ready for a constructive discussion, which is why market sentiment has improved somewhat. But, unfortunately, that's why investors are profit-taking ing the gold, and it has been falling for eight days.

On the other hand, the Fed raised interest rates last week, raising the US government bond rate. And it is very typical to drop gold if the bond rate rises.

At FOMC last week, Fed Chairman Powell spoke about American economic growth, the job market, and inflation. And most of the words were positive, but there was a sense of apprehension in his words as oil prices rose around the world.

If the energy price continues to rise like this, there is no doubt that it will significantly impact the economy in the future. So, it cannot be said that fundamentally gold is wholly gone or going.

However, since Russia and Ukraine both want to come to a mutual agreement, market sentiment is now saying that gold will drop a little more. And technically, since the gold price has closed below the trend line support, so technically, it can be said to be bearish now.

There are no primary market mover economic reports other than Powell's speech next week. However, any news on the Russia-Ukraine issue will significantly impact the gold market, and it goes without saying. In other words, gold is more likely to drop if nothing else happens.

Gold's Technical Analysis

Technically, gold has stabilized below the trendline support, and it looks like it will be in a bearish trend for a while.

There is support is identified from the current rate is $1920. If gold breaks below the $1920, our next target will be in the $1900/1890 price zone. However, the $1900/1890 price zone is a solid support zone we should remember.

In other words, the market is more likely to make some corrections from the $1900/1890 price zone. However, if the gold price breaks below $1890, our final target will be $1850/1840.

On the other hand, there is a significant resistance from the current Gold Prize to the $1950 Prize Zone. If gold breaks above the $1950, it could again test the $1975 area.

However, even if Gold tests $1975, the bearish trend will not change. Gold must again break out of the trend line support area for the bearish trend to change.

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