Gold Price: Trying to Resume Long-Term Down Trend
- Gold Prices Under Pressure After Topping at Two-Month Highs
- Break of Monthly Support Needed to Confirm Trend Resumption
Gold prices are working on a third consecutive day of losses having reversed downward after finding resistance at two-month highs. The dominant near-term trend continues to favor the upside while the series of higher highs and lows defining August trade thus far remains intact.
With that in mind, the upswing still appears corrective in the context of a multi-year decline in play since prices topped near the $1900 figure in 2011. Confirmation longer-term trend resumption requires a daily close below the 1126.63-31.86 area, marked by resistance-turned-support at the August 13 high and the 23.6% Fibonacci expansion. That would initially expose the next downside barrier at 1108.35, the 38.2% level. Alternatively, a rebound back above the 14.6% Fib at 1146.35 would put the focus back on the 1169.86-70.79 zone (August 24 high, 61.8% Fib retracement).
KEY UPCOMING EVENT RISK:
26 AUG 2015, 12:30 GMT – US Durable Goods Orders (JUL) – Expected: -0.4%, Prev: 3.4%
27 AUG 2015, 12:30 GMT – US GDP (Annualized) (2Q S) – Expected: 3.2%, Prev: 2.3%
28 AUG 2015, 12:30 GMT – US Core PCE (YoY) (JUL) – Expected: 1.3%, Prev: 1.3%
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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