Gold Price Analysis: Monday's spinning top suggests buyer exhaustion
Gold printed a seven-year high of $1,703 on Monday but closed the day with a spinning top candle, signaling buyer indecision in the market. A bearish reversal would be confirmed if prices close Tuesday under $1,657 (Monday's low), validating the spinning top candle and the bearish divergence of the 14-day relative strength index.
A bearish close would open the doors for a pullback to key average support near $1,640. A violation there would expose the psychological support at $1,600 (10-week average). On the higher side, a close above the spinning top's high of $1,703 would indicate a continuation of the uptrend. At press time, the yellow metal is trading at $1,670 per Oz, representing a 0.4% drop on the day.
Commodity Report: Gold Price Forecast [Video]
Gold prices hit a more than seven-year high on Monday as a stock market rout on concerns over the widening coronavirus outbreak and its economic impact drove investors to safe-haven assets, although profit taking later unwound much of the metal's rise.
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