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Talking Points

  • Gold Prices Test Channel Support at $1,340.00
  • A Bounce in the Price of Gold Exposes Resistance Near $1,348.00
  • If you are looking for more commodity trading ideas? check out our Gold Trading Guide

The price of Gold is now trading to new session lows, with prices now pressuring support near $1,340.00. With today’s price action trading lower, this marks the second session Gold prices have declined this week. If prices break below support, it would potentially open Gold up to a further retracement of September’s standing uptrend. Alternatively, if Gold prices bounce here, it suggests that the metal may be trading in a descending price channel. A bounce in price near current levels would suggest that the price of Gold might again rebound towards resistance near $1,348.00.

Gold Price 1 Hour & Price Channel:

Gold Prices Test Channel Support at $1,340.00

(Created by Walker England)

Short-term price action for Gold prices can be seen trading off of their daily lows in the 10 minute graph below. This short-term downtrend has been highlighted by the GSI indicator by denoting a series of short term lower lows created in the last 7 hours of trading. After reviewing 19,745,312 pricing points, GSI has indicated that prices have advanced a minimum of $2.70 in 56% of the highlighted 16 historical matching events. Traders looking for a bullish reversal in today’s trading should first watch for the price of Gold to trade through the first bullish historical distribution, which is displayed below at a price of $1,343.10.

Alternatively, the first bearish distribution for Gold is found at $1,338.20... GSI has indicated that prices have declined by $2.20s or more in 44% of the matching 16 historical events. A move through this value would not only place the price of Gold at new daily lows, but also beneath the previously mentioned value of channel support.

Want to learn more about GSI? Get started learning about the Index HERE.

Gold Prices Test Channel Support at $1,340.00

Sentiment for Gold (Ticker: XAU/USD) currently has a SSI reading at -1.10. With 52% of traders positioned short, this typically gives Gold a slight bullish bias. In the event that Gold price breakout higher, it would be expected to see SSI move towards greater negative extremes. Alternatively, in the event of a new bearish breakout, traders should look for SSI to flip back to a positive value.

Gold Prices Test Channel Support at $1,340.00

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Contact and Follow Walker on Twitter @WEnglandFX.