Gold Breaks to Fresh Lows on the Year; What’s Next?

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Gold Breaks to Fresh Lows on the Year; What's Next?

Gold price continues to fall. After breaking below a 2013-2014 consolidation low around 1180, it has entered another leg in a bearish trend since the 2011 and all-time high at 1920. Let’s see what is next for gold.

Gold slid further following the FOMC’s announcement that it was ending QE. After a tight consolidation around 1170 to start the week, it is now starting another leg down. If we get a pullback, look for sellers at 1170. A break above 1180 would signal consolidation/bullish correction, but the 1200 handle might provide support. If the market continues to slide, the 1000-1045 area will likely have buyers especially if the weekly RSI dips toward 20.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.