- Gold's daily chart is flashing a bearish candlestick pattern.
- The yellow metal is stuck in a falling channel on the hourly chart.
Gold is currently trading near $1,678 per ounce, having printed a session low of $1,670 an hour ago.
The bias remains bearish despite the price bounce, as the hourly chart bearish channel is intact. Additionally, the daily chart is reporting a bearish doji reversal pattern, which comprises a doji candle near or at market tops, a sign of bull fatigue, and a bearish follow through in the form of a red candle on the following day.
The yellow metal created a doji candle on Thursday and fell by over 2% on Friday to confirm a bearish doji reversal.
All in all, the path of least resistance appears to be on downside and prices could fall to $1,650 in the short-term. That said, the long-term bias remains constructive with the metal likely to pick up a bid on potential coronavirus-led risk aversion.
Many observers believe the stock markets are not out of the woods yet and could face renewed selling pressure due to ever strengthening prospects of a prolonged economic downturn, strengthening haven demand for the zero-yielding metal.
“Just one of the reasons is the stock market crisis. During times of uncertainty, precious metals shine. For many young investors, this is the first time they have experienced sharp drawdowns in their passive, index driven portfolio. In the months to come, we expect these young investors to appreciate the capital preservation powers of precious metals,” said Ken Lewis, CEO of OneGold & APMEX.
As of Friday, the S&P 500 was reporting over 25 percent gains on the low of 2,192 registered on March 24.
|Today last price||1678|
|Today Daily Change||-5.86|
|Today Daily Change %||-0.35|
|Today daily open||1683.62|
|Previous Daily High||1718.99|
|Previous Daily Low||1679.7|
|Previous Weekly High||1747.82|
|Previous Weekly Low||1679.7|
|Previous Monthly High||1703.27|
|Previous Monthly Low||1451.3|
|Daily Fibonacci 38.2%||1694.71|
|Daily Fibonacci 61.8%||1703.98|
|Daily Pivot Point S1||1669.22|
|Daily Pivot Point S2||1654.81|
|Daily Pivot Point S3||1629.93|
|Daily Pivot Point R1||1708.51|
|Daily Pivot Point R2||1733.39|
|Daily Pivot Point R3||1747.8|
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.