Gold Price Outlook – A Support Break Sets Up More Selling
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Gold Price Technical Outlook:
- Gold price flirting with big support break
- A breakdown will have lower side of bull-flag in play
Gold may take another leg lower soon
Gold has been weak of late with it paying no attention to the USD, it is the flows into BTC that seem to be stealing gold’s thunder. A theme that has been in play and may stay in play for a while longer. There is big support in the current vicinity from all the way back in 2011, with the low in November holding it on a weekly closing basis.
The low from November at 1764 is the line-in-the-sand at this time. A firm close below sets gold up to continue lower, with the lower parallel of a developing long-term bull-flag sitting around the 1700-line. The price action isn’t particularly encouraging for longs at this time, keeping the trading bias neutral (if support holds) to bearish (if noted support breaks).
Long-term, the bull-flag may eventually lead to another major leg higher, but not a development that will likely come to the forefront any time in the relatively near future.
Gold Price Daily Chart (Nov low, lower t-line of bull-flag)
Gold Price Weekly Daily Chart (long-term support, bull-flag)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.