Not able to stay above 2080, gold retraced quickly.
Yesterday's market opened with a continuation of the upward momentum trend from the previous Friday's closing; it reached a historic new high of 2147 during the relatively weak volume Asian session but then started to decline. During the European session, the momentum officially reversed after gold lost the support zone of 2070-80(1). It fell below the 2050(2) support at the US session, hitting a daily low of 2020. The day ended at 2028, with a massive daily fluctuation of $126, down by $48. After squeezing out the short positions, the gold market has calmed down today, and the overall trend has turned bear.
1-hour chart - The gold price experienced rapid ups and downs yesterday; not much technical analysis can be done, and we could only rely on those key price levels,2070(1), 2050(2), and 2020(3), to make our market entry, profit-taking, and stop-loss decisions. The trading range can now be set between 2020 and 2050(4). Whether the gold price is truly declining still needs to be observed and confirmed, where technical analysis is more passive in such volatile market conditions. However, if the price continues to decline within the day, the next target level would be around 2000.
Daily chart - As mentioned yesterday, gold needed to stay within the range of 2080-2147(5) in the next 48 hours; otherwise, there would be a clear signal of a trend reversal on the daily chart. Currently, the trend reversal signal(6) has already appeared. Unless the price goes back above 2080 in the next 48 hours, the market is now bear. Once the gold price falls below yesterday's low of 2020, a new round of selling will resume.
S-T Resistances:
2050
2045
2038-40
Market price: 2033
S-T Supports:
2030
2025
2020
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Yesterday's market opened with a continuation of the upward momentum trend from the previous Friday's closing; it reached a historic new high of 2147 during the relatively weak volume Asian session but then started to decline. During the European session, the momentum officially reversed after gold lost the support zone of 2070-80(1). It fell below the 2050(2) support at the US session, hitting a daily low of 2020. The day ended at 2028, with a massive daily fluctuation of $126, down by $48. After squeezing out the short positions, the gold market has calmed down today, and the overall trend has turned bear.
1-hour chart - The gold price experienced rapid ups and downs yesterday; not much technical analysis can be done, and we could only rely on those key price levels,2070(1), 2050(2), and 2020(3), to make our market entry, profit-taking, and stop-loss decisions. The trading range can now be set between 2020 and 2050(4). Whether the gold price is truly declining still needs to be observed and confirmed, where technical analysis is more passive in such volatile market conditions. However, if the price continues to decline within the day, the next target level would be around 2000.
Daily chart - As mentioned yesterday, gold needed to stay within the range of 2080-2147(5) in the next 48 hours; otherwise, there would be a clear signal of a trend reversal on the daily chart. Currently, the trend reversal signal(6) has already appeared. Unless the price goes back above 2080 in the next 48 hours, the market is now bear. Once the gold price falls below yesterday's low of 2020, a new round of selling will resume.
S-T Resistances:
2050
2045
2038-40
Market price: 2033
S-T Supports:
2030
2025
2020
If you like my work, please give me a thumbs up 👍.
Feel free to leave a comment; share your thoughts 🤟.
P. To
P. To
The price of gold is still fluctuating within the range of 2020-2050(1), and we still need to wait for a breakthrough. Keep a close eye on the employment data to be released tonight in the US.