GOLD BOUNCE BACK AND STAYS IN A DAILY CHART TRIANGLE
Gold has been considered a highly valuable commodity for millennia, and the gold price is widely followed in financial markets around the world. Most commonly quoted in U.S. Dollars (XAU/USD), gold price tends to increase as stocks and bonds decline. The metal holds its value well, making it a reliable, safe haven. Markets turn cautious, primarily inactive, as the Federal Reserve (Fed) prepares for the Federal Open Market Committee (FOMC) monetary policy meeting announcement. Recently mixed data contrasts the Fed policymakers’ hawkish bias to confuse traders. Also significant is the return of China after a long weekend amid chatters that the dragon nation will save its most significant real-estate player. Evergrande Chairman and the International Monetary Fund’s (IMF) Chief Economist Gita Gopinath also sound optimistic in his latest speech and supported the brighter concerns.
Gold took another dive lower to end last week but saw some strength around a familiar zone of support yesterday. The 1742/65 area dates to April of last year, an area that has been in play numerous times since, with its most recent test in June. A closing candle below yesterday’s low at $1742.00 could do the trick in accelerating another leg lower. If this is the case, the next line of support to watch comes by lower triangle line and strong support horizontal line at $1680.00. It had been a support line on several occasions from April last year. Suppose the price breakthrough this zone it is possible to reach the levels around $1600.00 per troy ounce because it will activate the bears. If the price continues on North in the following days, it is possible to test the upper resistance triangle line again at $1833.00. If the price breakthrough, the bulls can test the levels around $1915.00 or slightly higher at around $1960.00. if inflation continues to rise, why not see again price levels of 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.
Gold took another dive lower to end last week but saw some strength around a familiar zone of support yesterday. The 1742/65 area dates to April of last year, an area that has been in play numerous times since, with its most recent test in June. A closing candle below yesterday’s low at $1742.00 could do the trick in accelerating another leg lower. If this is the case, the next line of support to watch comes by lower triangle line and strong support horizontal line at $1680.00. It had been a support line on several occasions from April last year. Suppose the price breakthrough this zone it is possible to reach the levels around $1600.00 per troy ounce because it will activate the bears. If the price continues on North in the following days, it is possible to test the upper resistance triangle line again at $1833.00. If the price breakthrough, the bulls can test the levels around $1915.00 or slightly higher at around $1960.00. if inflation continues to rise, why not see again price levels of 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.