Gold Price Analysis: Bears noting old support for a discount
In the recent good news in markets, the price of the yellow metal has come under renewed pressure. The yellow metal has completed a 38.2% Fibonacci retracement of the weekly bull trend and has closed below the level on a daily basis. The following is a top-down analysis which illustrates where the next opportunity could be on a retest of an old support structure.
Gold Price Analysis: Consolidation at critical weekly lows, bears looking for a discount
The price of gold has been on the back foot this week, breaking below the psychological $1,850s area, plummeting to a fresh weekly low of $1,800.40. Meanwhile, with the Dow above 30,000 and the S&P500 closing at a fresh all-time high this week, there is limited upside for gold in the near-term due to the combination of the vaccine news and the beginning of the Biden transition.
Today, the spot market is consolidated between $1,805.99 and $1,818.23 where it meets the old July resistance and Thanksgiving holidays in the US. ''The recent capitulation in gold will likely mark the end of the consolidation phase,'' analysts at TD Securities explained.
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