Despite the recent USD weakness, metals have been offered, and gold is down nearly 1% on Thursday, trading at around 1,850 USD during the US session.

Gold seems to be heading toward the key support of 1,850 USD, where the price has stopped a couple of times already. However, this time it looks like the support won’t hold, and since there are large stop-losses below this level, we might see a quick bearish breakdown. The next immediate target for bears should be in the 1,815 USD region.

The full potential of this triangle pattern is circa 200 USD. Thus gold might actually drop to 1,600 USD if this potential is fully achieved.

BUT.. the technical situation might be bearish, but the fundamental situation remains ultra bullish as central banks are debasing their currencies and printing billions of dollars each day. Therefore, long-term investors should be using these dips to add gold to their portfolios. 

Gold needs to rise above 1,900 USD to stabilize, but that seems unlikely right now, considering the bearish sentiment. 

Source: https://www.axiory.com/technical-analysis/gold-looks-bearish-poised-to-crash-below-1-850-usd

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About Author

Peter Bukov

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

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