Gold Clears All Major Supports, Eyes the 1680 USD/oz Target

By Tomasz Wisniewski|

Published: July 07 2022, 08:28 GMT+0

Gold Clears All Major Supports, Eyes the 1680 USD/oz Target


At the beginning of the year, the price of almost all goods skyrocketed. Houses, metals, food, energy, and pretty much everything. It resulted in massive inflation, which is currently one of the most talked about topics. The second half of the year, brought a small cooldown, at least in some parts of the market. Metals, energies, and even some crops are down. This of course should help combat inflation but for us the most important thing is that it brings new, exciting trading opportunities.

Today, I would like to show you the situation on gold, which is currently at its lowest level in 2022. July was and continues to be catastrophic for gold. In just a few days, the price managed to break three key supports; it all started with a massive Head and Shoulders pattern (yellow), which started forming in October 2021. A few days ago, sellers managed to break the first crucial support; the neckline of this formation (red). The second one was the long-term up trendline (navy blue) and the third was the horizontal on eon the 1784 USD/oz (blue), which had been supporting the price since last December.

As you can see, gold managed to crash all major supports. The only one currently left is the at 1680 USD/oz (green), which now serves as a target. In the short-term, the price may climb higher, in order to test the 1784 USD/oz as a resistance but in the long-term, sentiment is negative and the movement towards the green area seems almost certain.