Gold, The Chart of the Week: $1,880's are eyed as last defense for continued upside


Share:
  • 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. 

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

EUR/USD consolidates around 1.0760 ahead of US CPI Premium

EUR/USD consolidates around 1.0760 ahead of US CPI

EUR/USD is consolidating near 1.0750 and the DXY holds above 104.00. The cautious market mood helps the US Dollar remain steady as investors gear up for crucial macroeconomic data releases and central bank meetings. The US Consumer Price Index is due on Tuesday.  

EUR/USD News

GBP/USD steady around 1.2550 as attention turns to US inflation

GBP/USD steady around 1.2550 as attention turns to US inflation

GBP/USD rebounded after finding support at the 1.2540 area and climbed toward 1.2570, on a quiet session. October labor market data from the UK and November inflation data from the US will be released on Tuesday ahead of the Fed's and the BoE's policy meetings.

GBP/USD News

Gold extends daily slide toward $1,980 Premium

Gold extends daily slide toward $1,980

Gold price remains under heavy bearish pressure and trades at its lowest level in nearly three weeks at around $1,980. The benchmark 10-year US Treasury bond yield is up more than 1% on the day, weighing on XAU/USD ahead of this week's key macroeconomic events.

Gold News

Bitcoin price backtracks to $40,000 as whales move to sell $671 million worth of BTC

Bitcoin price backtracks to $40,000 as whales move to sell $671 million worth of BTC

Bitcoin price crashed on Monday for the first time in nearly three weeks. The market was expecting a bullish continuation until the Securities & Exchange Commission (SEC) approves a spot BTC ETF in January 2024. 

Read more

S&P 500 Forecast: Index produces new 2023 high

S&P 500 Forecast: Index produces new 2023 high

The S&P 500 index launched itself just barely to a new high for the year on Monday. In its second hour of trading, the index reached 4,620, which was just above the earlier annual high of 4,607 from July 27. 

Read more

Majors

Cryptocurrencies

Signatures