Gold Price Analysis: Remains below key counter-trendline resistance

Gold is not going down without a fight on the short-term time frames.
The broader bias remains in the hands of the bears.

Gold is under pressure on the weekly and daily chart, but the 4-hour time frame is proving problematic to the bearish case.

The following illustrates the bearish bias in a top-down analysis:

Weekly chart

There is an opportunity on the weekly chart to trade the next downside extension following the latest correction.

Daily chart

The daily chart shows that the price has already broken trendline support which is now expected to act as a counter trend line resistance.

A break below the 21-day moving average would add more conviction to the bearish case.

4-hour chart

However, the bearish outlook has not been an easy ride so far on the 4-hour time frame.

The yellow metal remains coiled in a tight range.

The price action has been unfavourable to the overall bearish outlook and is testing the bear's commitments at this juncture.

A break above the resistance structure will put the counter trendline and 21-moving average into jeopardy.

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.