Gold analysis: Metal drops below $2K on hot inflation
Technical levels to watch.
The latest selling means more short-term support levels have broken down on gold chart, increasing the bear’s hold of price action. At the time of writing, gold was holding below $2000, a psychologically-important level. If there appears to be acceptance below this level, then watch out for a potential drop to probe liquidity below the December low at $1973 next. Below that level, we have the 200-day average coming in at $1965.
On the upside, resistance is now seen around $2010-$2015 area, which had been support until today’s breakdown.
Technical levels to watch.
The latest selling means more short-term support levels have broken down on gold chart, increasing the bear’s hold of price action. At the time of writing, gold was holding below $2000, a psychologically-important level. If there appears to be acceptance below this level, then watch out for a potential drop to probe liquidity below the December low at $1973 next. Below that level, we have the 200-day average coming in at $1965.
On the upside, resistance is now seen around $2010-$2015 area, which had been support until today’s breakdown.
Trade closed: target reached