Gold Could See Fresh Lows

EagleFX Team EagleFX

The golden metal in its 8-hour chart illustrates a bearish process that remains intact. Follow with us our reasoning for a potential bearish continuation in Gold.

1. The latest rally developed by the US Dollar index, suggests the short-term weakness in the yellow metal.

2. The stock market's rally shows the risk-on preference by big traders. In consequence, the safe-heaven commodity should under-performs for a short time.

3. From the wave analysis perspective, price action makes us expect a decline in five waves as a wave C labeled in black. This downward movement could accelerate on coming sessions. While price continues moving under $1,472.9, the bias will continue bearish.

4. A sell-side position will activate if the price closes under $1,459.5 per ounce. Our conservative profit target is at $1,450.5; a bearish extension could drive to the golden metal to continue its declines to $1,442.25, even until $1,432.3 per ounce.

5. Our bearish scenario will be invalid if price soars and closes above $1,472.9.

6. The risk of the bearish scenario will come from the end of the bullish cycle on the stock market, or if the US Dollar index continues developing mostly bearish.

Trading Plan Summary

Entry Level: $1,459.5

Protective Stop: $1,472.9

1st Profit Target: $1,450.5

2nd Profit Target: $1,442.25

3rd Profit Target: $1,432.3

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Author

EagleFX Team

EagleFX

EagleFX Team is an international group of market analysts with skills in fundamental and technical analysis, applying several methods to assess the state and likelihood of price movements on Forex, Commodities, Indices, Metals and

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