Gold Prices Fail to Sustain Bullish Rally
- Gold Prices Stall After Trading to New Weekly Highs
- Current Values of Support Include $1,290.57 and 1,284.88
- Looking for additional trade ideas for Gold, Oil and Commodities? Read our Commodities Forecast
After rallying as much as much as $20.72 an ounce in yesterday’s trading, Gold prices are now retreating from weekly highs. This price decline has come after yesterday’s FOMC rate decision and press release, which hinted at a 25 basis point hike in December. Commodities as a whole are continuing to sell off on this news, including the Crude Oil, Silver, and Gold prices.
Below, we can see Gold prices dropping off from Wednesdays high of 1,307.89. If Gold prices continue to descend, and close below 1,287.17 it should be seen as a significant shift in market momentum. A move beneath this value would completely eliminate yesterday’s gain and suggest a resumption of a longer term downtrend. If prices remain supported in the short term, traders should also look to intraday price action cues to determine if a rebound in Gold is in order.
Gold, Daily Chart and Resistance
(Created Using TradingView Charts)
As seen in the graph below, the price of Gold is now trading near key intraday support found near $1,290.57. This value is denoted by the S3 camarilla pivot, and if Gold holds this value it may suggest a rebound in price back up to points of intraday resistance. Range resistance for Gold prices is found at $1,301.98, while bullish breakouts may begin intraday over $1,307.68. A rebound to this point would have Gold trading at new weekly highs, and would suggest a return to bullish market conditions.
Alternatively, bearish breakouts may begin beneath 1,284.88. If gold prices reach this point traders may begin to target lower lows for the commodity, and initial bearish targets may be found near $1,273.47.
--- Written by Walker, Analyst for DailyFX.com
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