Gold outlook: Strong bearish signal on weekly close below broken $1975 higher base
|Gold
Gold edges higher on Friday in consolidation of sharp fall (2.9%) in past three days and on track for the biggest weekly loss since the last week of January.
Metal’s price fell on fresh optimism over debt ceiling talks and the latest hawkish shift in Fed’s rhetoric, which hinted possible further rate hikes, against signals of a pause in policy tightening cycle and speculations of rate cuts towards the end of the year, which made the dollar attractive.
Gold price lost ground on weaker sentiment and fell below important supports at $2000 / $1975 (psychological / Fibo 38.2% of $1804/$2080 / higher base), hitting two-month low, after penetrating rising and thickening daily cloud (top of the cloud lays at $1964).
Near-term action is likely to pause on oversold daily studies, but bears are expected to hold grip and keep in play expectations for further drop.
Weekly close below broken $1975 level (now reverted to resistance) to confirm break and keep bearish near-term stance, with close within the cloud, to boost negative signal for extension towards targets at $1942/26 (50% retracement of $1804/$2080 / daily cloud base) and risk test of $1920 (bull trendline drawn off $1616, Oct 2022 low) in extension.
Res: 1968; 1975; 1992; 2000.
Sup: 1951; 1942; 1926; 1920.
Interested in XAU/USD technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.