The price of Gold has come under pressure due to Federal Reserve Chairman Powell’s hawkish comments. Will the price of Gold continue lower?
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As with the EURUSD analysis yesterday, the USD strength has caused the price of Gold to trade lower. The Federal Reserve Chairman Powell will continue to testify to congress this week, which could cause further downside pressure on Gold. The comments yesterday surrounding the need for the Fed to hike rates at a faster pace caused the price to fall $40.00. This type of fundamental pressure could be a catalyst for the price of Gold to reach the lows of $1630.00.
Looking at the chart we can see the price is healing towards the support of $1800.00 level again. Longer term traders will be looking to see if the price could retest the highs where the selling pressure originated. If price can reach this level and sellers step in it could offer opportunities to traders looking to see Gold prices lower.
Alternatively, day traders could look for minor highs that have formed on the lower time frames. The hourly chart shows the price failing to make new highs. If this happens again and the price forms a double top pattern day traders could consider an opportunity.
The price on the chart has traded through multiple technical levels and some observations included:
- Price found resistance at $1850.00.
- Sellers could look to target $1800.00.
- If this support breaks the next target would be $1730.00.
Have you watched our EURUSD analysis? You can see it here.
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