• Gold has made a fresh weekly low and bears are looking for a deeper close for the month. 
  • A retracement is on the cards to test the bearish commitments from a 38.2% Fibo retracement of daily bearish impulse. 

As per prior analysis noting that the price met a $1,765 downside target, Gold Price Analysis: Target achieved and fresh bear-cycle lows for 2021, the focus now must be on month-end.

We are five days from the end of the trading month and the price is threatening a bearish close for February having already printed a lower low on the monthly chart. 

However, we might need to see a firmer test of the upside before the monthly candle can close below the prior month's lows. 

The following is a top-down analysis to illustrate the potential trajectory for the price in the week ahead and for what could be in store next month. 

Monthly chart

Weekly chart

The weekly chart is on the verge of a bearish close below the Dec lows which would signify that the bears are still in play for March business. 

Daily chart

The price has started to move towards a 38.2% Fibonacci retracement area that has a confluence with the old weekly support.

There are a number of risk events ahead this week that could see some volatility from which a firmer test of the area would be expected. 

Bears will definitely want to see this resistance structure holding into the close for the week for prospects of a deeper retracement as per the monthly chart above. 

From a trading perspective, the 4-hour chart can be monitored for a downside opportunity from the slightly higher ground for a restest of the monthly demand territory:

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.

Feed news

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD stabilizes after US retail sales smash estimates

EUR/USD has bounced off its lows but remains below 1.20 after US retail sales smashed estimates with a 9.8% leap. Moreover, jobless claims tumbled to 576,000. Markets are digesting the big bulk of data.


GBP/USD rises toward 1.38 ahead of Brexit meeting

GBP/USD maintains a cautious approach below 1.3800, accumulating minor losses. Global risk uncertainties weigh on the pair. Investors await the Brexit meeting on the NI issue.


Ripple aims for significant rebound toward $2

XRP price has had an impressive 240% rally since April 3, hitting a three-year high of $1.96 and moving closer to ranking third again in terms of market capitalization, only $6 billion behind BNB at the moment. 

Read more

XAU/USD jumps above $1,760 amid slumping US T-bond yields

Gold extended its daily rally beyond $1,760 on Thursday. 10-year US Treasury bond yield is down more than 4% on the day. US Dollar Index falls into the negative territory below 91.60.

Gold News

Citi (C) beats on EPS and revenue, investment banking booms!

Citigroup (NYSE:C) reports Q1 2021 earnings showing strong growth in investment banking following on from Goldman smashing it on Wednesday. Citi shares are trading $74.20 in pre-market up nearly 2%.

Read more