The price of Gold has broken a key trend which could see the commodity price move lower.
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The price of Gold is interesting to talk about currently as the battle between USD strength and US Inflation keeps the price high and trading within a weekly trading range. The US inflation continues to rise which in recent times has seen Gold prices move higher as investors look to hedge the rising inflation. However, as inflation rises the Federal Reserve looks to hike interest rates which can keep the USD strong, due to the fact Gold prices are pegged to the USD we could see Gold prices fall on this. The two situations seem to be keeping the price of gold range bound at the moment making lower time frame trends key to watch for opportunities.
The weekly chart highlights the consolidation in the market currently giving us opportunities to trade from the high to the low. The 4hr chart has seen the price recently break lower forming a new low. This could give us a short idea if the price can retest the previous resistance zone or supply zone created by the last bullish candle before the price made the new low. If the price forms bearish price action here we can look for the short to the lows or a reversal of the trend on a lower time frame can provide an opportunity.
Do you trade AUDUSD? you can see our analysis on the key forex pair here.
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