Gold technical analysis: Eyes support at $1,456
|- Gold's daily chart shows a bearish Doji reversal.
- The yellow metal risks falling to support at $1,456.
Gold prices could drop to support at $1,456, the candlestick pattern on the daily chart indicates.
On Thursday, the yellow metal closed below $1,466 – the low of the Wednesday's Doji candle – confirming a bearish reversal. Put simply, the corrective bounce from the Nov. 12 low of $1,445 has ended and the bears have regained control.
Prices, therefore, look set to test support at $1,456 (Nov. 18 low).
Supporting the bearish case is the below-50 reading on the 14-day relative strength index (RSI). The ascending trendline breakdown on the hourly chart also indicates the path of least resistance is to the downside. As noted earlier this week, the gold market sentiment is still quite bearish.
On the higher side, Wednesday's Doji candle high of $1,479 is the level to beat for the bulls.
Daily chart
Trend: Bearish
Technical 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.