The advance of gold stops for the moment, at which levels to watch?

Gold saw gains stagnate yesterday just above $ 1,850 as price collided with a test of its 200-day moving average

Gold D1 11-02
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Gold remains flat on this day, but saw its gains stagnate yesterday after climbing higher on the US CPI Report with a jump to $ 1,855. The bullish movement stalled, however, after meeting resistance from the 200-day moving average (blue line), now observed at $ 1,856.38.

The broken trendline support – now resistance – also acts as an additional layer of defense for the sellers for now, alongside the 38.2 retracement level of the swing movement lower to start the year at 1851. , $ 60.

Despite the strong rebound to just below $ 1,800, this is where buyers will really need to be brave to try and extend the upward momentum.

Otherwise, the recent rebound might prove to be a bit of a brief relief for gold, but at least it provides some indication of structural appetite overall.

Exploring the short-term chart:

Gold H1 11-02

Buyers are still in control in the short term as they stay above the 200 hour moving average (blue line), now at $ 1,833.06. Stay above that and the bias remains more bullish, but break below and sellers will start threatening a potential recovery again.

Fed Chairman Powell yesterday reiterated the same message that we have heard before since January so that the fundamentals at stake remain unchanged. Therefore, take a look at the technical levels highlighted above for a better idea of ​​the next directional move for gold.


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