Jump to content

Gold Price Forecast: Gold Threatens Larger Break, 1854 Support in Sight


Recommended Posts

GOLD TALKING POINTS:

Gold Price Forecast: XAU Winds Up for a Big Break - FOMC on Tap

Gold prices started off the week with another aggressive sell-off. Last Monday marked the May open for Gold and the yellow metal slid down for a fresh two-month-low before finding some support at prior resistance, taken from the swing at 1854.

That price at 1854 remains relevant: This was the swing high in January and it showed as resistance briefly in February, before prices gapped-through in the middle of that month, eventually building three days of support at that spot before the bullish trend extended.

But, after helping to set support on Monday and Tuesday of last week, sellers pushed down there for a test to start this week. And that’s leading to a strong rebound as US markets come online for the week. This puts the focus back on to short-term resistance, with levels at 1878 remaining of interest. Beyond that, we have a zone that was in-play for resistance on Friday at 1888-1891. And if bulls can push beyond that, then the same 1900-1923.70 zone comes back into play, which continued to carry pull over price action through last week, with the 1908 level coming in to help set last week’s high.

GOLD TWO-HOUR PRICE CHART

gold two hour price chart

Chart prepared by James Stanley; Gold on Tradingview

GOLD BIGGER PICTURE

Taking a step back to the daily chart highlights the importance of this 1854 level. Prior resistance has played in as fresh support and sellers have so far remained fairly persistent after this level has come into play.

But, perhaps more enticing than the support hold itself is the potential move if it gives way, as the next spot of support is down around the 1831 area, after which a prior swing from 1810 comes into play. And longer-term support is down around 1783, which keeps the door open for sizable potential on the short side if sellers can retain control of longer-term price action.

GOLD DAILY PRICE CHART

gold daily price chart

Chart prepared by James Stanley; Gold on Tradingview

Gold Longer-Term: Trendline Nearing

Taking a further step back on the Gold chart and there’s another item of interest. There’s a bullish trendline that, for this week, projects to around 1846. For Gold bulls, a hold at this level would be key to keeping the door open for topside strategies. This trendline connects swing lows from last August and this January, and that projection is close to coming into play and if sellers continue to drive, it’ll likely come into the picture this week.

GOLD WEEKLY PRICE CHART

gold weekly price chart

Chart prepared by James Stanley; Gold on Tradingview

--- Written by James Stanley, Senior Strategist for DailyFX.com. 9th May 2022

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      22,973
    • Total Posts
      95,277
    • Total Members
      43,582
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    1962Dave
    Joined 21/09/23 12:42
  • Posts

    • Dow, Nasdaq 100 and Nikkei 225 all fall back after hawkish Fed decision The Fed’s ‘hawkish pause’ has sent markets into a tailspin, with stocks falling as investors contemplate the prospect of a much longer period of higher interest rates in the US. Source: Bloomberg  Chris Beauchamp | Chief Market Analyst, London | Publication date: Thursday 21 September 2023 11:43 Dow slumps following Fed decision The index saw a substantial reversal yesterday, and has moved back towards the lows of last week. The 100-day SMA could now provide some support, but below this the 34,000 level and the 200-day SMA could also see some buying emerge. A revival above 35,000 would be needed to secure a more bullish short-term view. Source:ProRealTime Nasdaq 100 gives back more gains Losses continue here, with yesterday’s drop further eating into the gains made from the August lows. The price is currently sitting on the 100-day SMA, and a close below this opens the way in short order to 14,690. Below this the August low at 14,500 comes into view. From here, the next major level to watch would be the August 2022 high at 13,722. A rally above 15,300 would be needed to suggest that the buyers have succeeded in reasserting control. Source:ProRealTime Nikkei 225 sees further losses The drift lower of earlier in the week has turned into a more dramatic move lower. This has put the sellers back in control. Below the 50- and 100-day SMAs, the price then moves on to target 32,076, and then to the August low at 31,295. Buyers will want to see a move back above 33,000 to suggest that the selling has been halted for the time being. Source:ProRealTime
    • Brent crude oil, gold and natural gas prices drop post hawkish Fed pause Outlook on Brent crude oil, gold and natural following Fed’s hawkish pause. Source: Bloomberg  Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Thursday 21 September 2023 11:27 Brent crude oil comes off its ten-month high The price of Brent crude oil continues to come off Tuesday’s ten-month high at $94.97 while the US dollar once more appreciates, exerting a slight downward pressure on the oil price, and as the Fed delivered a hawkish pause. Support can be spotted around the $90.97 early September high ahead of the psychological $90.00 mark. Resistance lurks around Tuesday’s $93.32 low. Further up lies this week’s ten-month high at $94.97 and the mid-September 2022 high at $95.19. Source: ProRealTime Gold comes off yesterday’s $1,947 high Gold rallied back towards its $1,953 per troy ounce early September high but only managed to reach $1,947 before it came off again as the greenback continued to appreciate following hawkish comments at the Federal Open Market Committee (FOMC). The 200-day simple moving average (SMA) at $1,925 is currently being probed as support, below which the 6 September low at $1,915 may also act as minor support. Minor resistance above the 55-day simple moving average (SMA) at $1,932 sits at Tuesday’s $1,937 high. Source: ProRealTime Natural gas comes off this week’s six-week high Natural gas prices recently shot back up to the $3.000 mark on weather and production concerns but are currently slipping back from this week’s high at $3.021. A slip through Wednesday’s $2.857 low would put Monday’s low and the 200-day simple moving average (SMA) at $2.800 to $2.791 on the map. Immediate resistance is seen at the early September high at $2.904 ahead of last and this week’s highs at $2.973 to $3.021. Slightly further up sits the August peak at $3.050. Source: ProRealTime
    • I think it comes down to marketing, community managedment, and events + ofcourse a neat interface with awesome features
×
×
  • Create New...
us