Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Gold Price Forecast: Gold Grasps for 1700 Following Five-Week-Plunge

Gold Price Forecast: Gold Grasps for 1700 Following Five-Week-Plunge

James Stanley, Senior Strategist

Gold Talking Points:

  • After spending late-May and early-June in consolidation, Gold prices have plunged to fresh 11-month-lows during the current five-week sell-off.
  • Gold prices ran into the psychological level of 1700 last week but it’s the support a little lower, around 1673-1680, that looms large on the matter. A test below that zone leads to fresh two-year-lows.
  • The analysis contained in article relies on price action and chart formations. To learn more about price action or chart patterns, check out our DailyFX Education section.
Gold Forecast
Gold Forecast
Recommended by James Stanley
Download our Gold Forecast
Get My Guide

Gold prices have started the week with a bounce which, given the way last week went, is a bit of reprieve for bulls. Gold prices have been falling for over a month now, following the build of a rising wedge pattern in June that led to a strong and decisive bearish breakdown.

That breakdown finally started to find a bit of support last week at the psychological level of 1700, and as looked at in this week’s Technical Forecast, that can keep the door open for a bit of a bounce. The first zone of interest for that theme is already in-play, spanning from Fibonacci levels at 1723 and 1733.

Gold Two-Hour Price Chart

gold two hour chart

Chart prepared by James Stanley; Gold on Tradingview

Gold Hold Near the Lows

Taking a step back on Gold and there’s scope for further recovery, largely on the basis of how minor this bounce has been so far. This morning’s bounce has been just a 14.4% move in the bearish trend that started in June. The 38.2% retracement of that move, however, rests in the zone that runs from 1763-1771, and this seems a reasonable area to look to for lower-high resistance in bigger-picture continuation themes, if the bounce does persist.

How to Trade Gold
How to Trade Gold
Recommended by James Stanley
How to Trade Gold
Get My Guide

Gold Daily Price Chart

gold daily price chart

Chart prepared by James Stanley; Gold on Tradingview

Gold Shorter-Term

I kept the technical forecast for Gold at neutral for this week, and that’s largely on the basis of the primary trend appearing to be at a pause point. A five-week sell-off is encouraging for sellers, but with price angling up to support around two-year-lows, a clean breach didn’t seem probabilistic enough to retain a bearish forecast.

But, with that said, it does appear as though there’s some counter-trend potential for this week and that can keep the door open for a move up to lower-high resistance for longer-term themes. From the four-hour chart below, I point out a couple of additional areas to look to for shorter-term themes, and there’s a level around 1739 and a zone from 1751-1753.

And, as an alternative approach – the potential for bearish breakouts does remain in the event that sellers can take-out 1695 in short-order. In that even, follow-through support shows up at the two-year-low of 1680 for short-term breakout strategies.

The Fundamentals of Breakout Trading
The Fundamentals of Breakout Trading
Recommended by James Stanley
The Fundamentals of Breakout Trading
Get My Guide

Gold Four-Hour Price Chart

gold four hour price chart

Chart prepared by James Stanley; Gold on Tradingview

--- Written by James Stanley, Senior Strategist for DailyFX.com

Contact and follow James on Twitter: @JStanleyFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES