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

XAUUSD

 


 

Try Secure Leveraged Trading with EagleFX!

Risk Warning: CFD and Spot Forex trading both come with a high degree of risk. You must be prepared to sustain a total loss of any funds deposited with us, as well as any additional losses, charges, or other costs we incur in recovering any payment from you. Given the possibility of losing more than your entire investment, speculation in certain investments should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution’s financial well-being. Before deciding to trade the products offered by us, you should carefully consider your objectives, financial situation, needs and level of experience. You should also be aware of all the risks associated with trading on margin.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD falls below 1.1850 as US consumer sentiment beats

EUR/USD is trading under1.1850, off the previous levels as US consumer sentiment beat estimates with 78.9 points. The Fed refrained from adding more stimulus, supporting the dollar earlier in the week. Investors are eyeing fiscal stimulus talks.

EUR/USD News

GBP/USD falls as the EU reportedly objects Johnson's bill

GBP/USD is trading around 1.2950, off the highs. According to reports, the EU remains opposed to UK PM Johnson's controversial bill, which violates the Brexit accord. 

GBP/USD News

XAU/USD struggles to move back above 100-hour SMA

Gold regained some positive traction on the last trading day of the week and recovered a part of the previous day's losses to over one-week lows. The commodity held on to its intraday gains and traded above the $1950 level through the mid-European session.

Gold News

Ethereum hits Bitcoin's bid to lead the market

Bitcoin risks dominance after the strong rise of Ethereum. Technical indicators show some significant discrepancies keeping the stress on the board. Sentiment levels are improving and bordering on optimism.

Read more

After yesterday's JMMC meeting WTI settles near $40 per barrel

WTI has been through a rollercoaster this week. The liquid gold has been in a downtrend leading into the OPEC+ JMMC meeting and then reversed the whole move. At the meeting the group agreed to extend the compensation period for overproduction till the end of December. 

Oil News

Forex Majors

Cryptocurrencies

Signatures