Gold, The Chart of the Week: $1,880's are eyed as last defense for continued upside
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $9.99 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFER- The Bulls burst through critical daily resistance.
- Bears need a weekly close below $1,830.
As per last week's analysis, Gold, Chart of the Week: Bulls take on the 38.2% Fibo, now eye the 61.8% golden ratio, the price respected the neckline of the M-formation initially and then the bulls took control again taking the price to a fresh daily high on Friday.
Risk aversion spiked late in the New York session as the US warned its citizens to leave Ukraine within 48 hours due to Russian invasion risks. This sent Wall Street into a tailspin and sent the US 10-year Treasury yields crashing below daily support from 2.061% to a session low of 1.915%. The greenback remained in positive territory in the 96 areas, DXY. However, for its haven allure, gold buyers emerged and the following illustrates past and prospective price action in a top-down analysis.
Gold, daily chart, prior analysis
Gold live market
The price respected the highlighted levels in last week's analysis and would now be expected to adhere to the overhead resistance with $1,880 as the last defence to a breakout.
Gold weekly chart
If the bears manage to take over control, the 38.2% ratio and 50% mean reversion levels between $1,850 and $1,840 guards a run into the low $1,830's. However, the bears will not be out of the woods until a weekly close below there.
- The Bulls burst through critical daily resistance.
- Bears need a weekly close below $1,830.
As per last week's analysis, Gold, Chart of the Week: Bulls take on the 38.2% Fibo, now eye the 61.8% golden ratio, the price respected the neckline of the M-formation initially and then the bulls took control again taking the price to a fresh daily high on Friday.
Risk aversion spiked late in the New York session as the US warned its citizens to leave Ukraine within 48 hours due to Russian invasion risks. This sent Wall Street into a tailspin and sent the US 10-year Treasury yields crashing below daily support from 2.061% to a session low of 1.915%. The greenback remained in positive territory in the 96 areas, DXY. However, for its haven allure, gold buyers emerged and the following illustrates past and prospective price action in a top-down analysis.
Gold, daily chart, prior analysis
Gold live market
The price respected the highlighted levels in last week's analysis and would now be expected to adhere to the overhead resistance with $1,880 as the last defence to a breakout.
Gold weekly chart
If the bears manage to take over control, the 38.2% ratio and 50% mean reversion levels between $1,850 and $1,840 guards a run into the low $1,830's. However, the bears will not be out of the woods until a weekly close below there.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.