Gold futures movements during the last week indicate a wild price swing amid growing hopes that the Fed is likely to hold further rate hikes which could turn the momentum on the bearish side as the labor market is still too tight.
Despite a steep surge during the last week, that gold futures could not find a breakout above the significant resistance at $1877 indicates a steep slide ahead if gold futures start the upcoming week with a gap-down opening.
The Fed’s December meeting minutes indicate the interest rate is likely to be kept high all year, which could once again increase exhaustion in gold prices.
Technically in a weekly chart, gold futures could repeat the moves of Jan.-Feb. 2022 from Jan. 9 to Feb. 20, 2023, if they cannot find a sustainable move above the immediate resistance at $1877 during the upcoming week.
In a daily chart, a breakdown by gold futures below the significant support at 9 DMA, which is currently at $1838, during the upcoming week, will be the first confirmation of the advent of a downtrend in gold.
Undoubtedly, wild price swings are likely to continue during the upcoming weeks and could increase uncertainty, but rallies will attract sellers above the current levels.
I conclude that the weekly closing by gold futures ensures the advent of a downtrend, as gold futures faced stiff resistance at this level before a steep slide in Jun. 2022.
Disclaimer: The author of this analysis does not have any position in Gold futures. Readers are advised to take any position at their own risk in commodities of the world.
- English (USA)
- English (UK)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Português (Portugal)
- Polski
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
Gold: Slide Likely, As $1877 Is Still a Challenge for Bulls
Published 08/01/2023, 10:48
Updated 09/07/2023, 11:31
Gold: Slide Likely, As $1877 Is Still a Challenge for Bulls
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.
Latest comments
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.