Gold Price Outlook:
- After pang high waste Monday, gold declines have continued, melancholy delegate support
- Still, a elemental opinion for a changed steel has remained constant
- Thus, a longer-term opinion stays constructive though a shorter-term opinion has enervated
Gold Price Forecast Sours as Losses Mount
After pang a estimable decrease on Monday, bullion has continued reduce as a week has progressed. As a result, a shorter-term technical landscape has been upended as several levels of support have been broken. While a elemental army during play sojourn unchanged, a technical developments have severely eroded gold’s near-term cost outlook.
Gold (XAU/USD) Price Chart: 4 – Hour Time Frame (June 2020 – Sep 2020)
We recently highlighted intensity support nearby $1,862 if bullion debility persisted. Evidently, a area has offering a jot of support, though a brief duration underneath a line competence have caused irrevocable repairs to a technical level. Consequently, a trail reduce has expected been done easier for bears and they competence demeanour to extend reduce still. Suffice it to say, support underneath a $1,862 area is rather meagre until $1,800.
The $1,800 symbol roughly coincides with a metal’s swing-highs in 2011 and 2012. Should it fail, a array of lower-lows will be continued, usually weakening bullion further. Therefore, $1,800 competence be noticed as a “line in a sand” in a entrance days as it looks to sentinel off an even deeper retracement.
Gold Price Chart: Weekly Time Frame (January 2010 – Sep 2020)
Regardless, a longer-term opinion for bullion from a elemental standpoint has remained constant. With that in mind, new waste competence volume to healthy converging in a bigger picture, though they are not to be underestimated over shorter time horizons as bullion appears increasingly exposed during this stage. In a meantime, follow @PeterHanksFX on Twitter for updates and analysis.
–Written by Peter Hanks, Strategist for DailyFX.com
Contact and follow Peter on Twitter @PeterHanksFX