The price of Gold is forming a bearish consolidation pattern around the critical $1800.00 level. Could this see the price trade lower?
Watch the video to learn more…
The price of Gold has been failing to breach the $1800.00 level for the past few weeks. On the weekly chart, we can see how important this level has been to the price of Gold in the past. The USD Index is currently at support and if the price holds here at the support we could expect some short term USD Strength. If this occurs the price of Gold could trade lower out of its recent consolidation.
The daily chart is highlighting the price is forming higher highs and higher lows but the price is surrounding the $1800.00 level. This tells us that buyers are not interested above the $1800.00 level and the price could search for lower support levels. This will only occur if the price closes out of the consolidation pattern. Until then, the price could try to remain within the pattern that day traders could look to trade within.
Have you watched our EURUSD analysis? You can see it here.
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