Gold Technical Outlook: The Short and Long of It
Gold Technical Highlights:
- Gold continues to trade with a negative tone
- Support levels to watch below in the near and long-term
- Break above 200-day could send modestly higher
Last week, gold broke solidly above a key reversal candle formed on October 8, but that had price running into the 200-day and a trend-line from May. This meant that while gold negated a negative price action event it ran aground at a big level immediately.
The turn lower has short-term support in focus around the 1745/48 level, and then from there a more important level at 1720. If selling were to continue at that point then the macro price area to watch is around 1676, extending back to just prior to the onset of the pandemic.
It will take a break above the recent high at the 200-day (1800) to get gold pushing towards confluent resistance around the 1830 mark.
For the full details, check out the video above.
Gold Daily Chart
Gold 4-hr Chart
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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.