Gold recovers from $2,353 – Is a further decline coming?
|-
Gold dropped to $2353 and bounced back to $2380
-
Markets awaiting PCE numbers.
-
$2400 likely to come as resistance.
-
Bears still looking for selling higher.
In previous reports we have been emphasizing our bias of bearish selling pressure dominating from $2430-$2435 and markets have done exactly as per our projections by reaching $2353 yesterday.
Today's opening witnessed some dead cat bounce that triggerred a relief rally towards $2380 and it was soon followed by sideways consolidation above horizontal support zone $2368-$2362.
As markets await key data results on PCE which is widely believed to be an important tool used by Fed to gauge inflation and further guidance on policy, we expect volatility to increase with the opening of US markets.
Immediate resistance may come at $2388-$2392 while strong break above this resistance will increase the possibility of extended recovery to $2400 followed by next overhead resistance $2410.
On the flip side, rejection from key resistance zone may trigger renewed selling pressure towards swing low $2353 while break below this low will send gold down direct to $2335-$2330.
Major support is seen positioned at 100 Day SMA $2324.
Disclaimer: The views expressed are based on prevailing trend analysis and price action. Please do not take it as trading advice.
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.