Gold could be on verge of a correction according to the daily doji formed on last day of 2018

  • Gold prices dropped for the highest levels since June as the dollar firmed into the close. 
  • Gold futures were on track for a 1.9% 2018 decline.

Gold rallied to $1,284 on the last day of the year, but was met by bears cashing in on the highest levels since mid-summer 2018 which sent prices back to $1,278. On the whole, gold was heading for first annual decline since 2015. Gold futures, as measured by the most-active contract, were on track for a 1.9% 2018 decline.

Stocks steadied and dollar firmed

The price of gold slid with a bid in the greenback and steady stocks on Wall Street. Stocks, on the whole, however, are ending on a negative note, with the benchmarks in bear-market territory. The S&P 500 and Dow Jones Industrial Average are on track for losses that will mark their biggest decline since 2008 and the NASDAQ is on its knees also. In recent weeks, the weakness has started to benefit gold prices due to the heightened volatility in the greenback also as the Fed gets prices out. However, for the year, the DXY is up 4.4%  but has dropped more than 1% in December, elevating gold prices. 

Gold levels

The technicals lean bearish as the price moves through the pivot at 1279 with RSI turning south and a doji forming at the end of a long run of bullish daily candles which could be a warning to bulls that a correction is imminent.  However, the 2018 50% Fibo level at 1262 was a key target which has been breached and may act as a firm support. 1287 is the 2018 61.8% Fibo. On the flipside, the 21-D SMA is now found down at 1250. 

  • Support levels: 1276 1271 1268
  • Resistance levels: 1283 1287 1291

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: positive mood could prevent the collapse

The shared currency has remained under selling pressure on Friday, amid mounting speculation the ECB will announce a larger-than-anticipated stimulus package next September. EUR/USD capped by a Fibonacci resistance at 1.1110, yearly low at risk.


GBP/USD: economic disruption on a no-deal Brexit to weigh on Sterling

The GBP/USD pair has closed the week with gains, a handful of pips below the 1.2150 level. The Pound advanced for a third consecutive day, helped by some headlines indicating that Jeremy Corbyn, has been in talks with the Scottish National Party.


USD/JPY: short-term advance to be capped by long-term jitters

The USD/JPY has recovered some ground these last few days, to close the week at 106.35. Still, it posted a lower low and a lower high when compared to the previous week, as the Yen benefited from its safe-haven condition on mounting concerns about a US recession. 


Gold gives back territory towards a 23.6% retracement

Gold prices were a touch lower by the end of the week, falling -0.68% having travelled between a high of $1,528.00 to a low of $1,503.87, ending the NY session around $1,513. 

Gold News

Four Signs of A Bear Market

I am a believer that the Universe gives you signs. That may sound a bit crazy, but these three charts are three more signs of a bear market. The top chart is the GLD exchange traded fund.

Read more