Forex Chart Of The Day: GOLD Price Trades Through Monthly Range Lows $1677.00

The price of Gold has traded through the monthly range lows, showing the momentum is with the sellers. Could the price continue to move lower?

Watch the video to learn more…

GOLD Analysis

The Gold price has come under pressure for the whole of 2022 due to the Federal Reserves rate cycle. Most recently we highlighted the bearish rejection in the middle of the range around $1800.00. This held confluence with the Federal Reserve talking of hiking rates more aggressively due to the rising inflation rates. In the most recent meeting the Fed hiked by 75bps and talked of a need for further hikes to come. Some economists are predicting the federal funds rates to reach 5% by the end of the year. 

Looking at the chart the price has broken down through the range lows around $1677.00. A consolidation pattern formed under this level causing the price to fall again to a minor support at $1630.00. If the price is going to continue lower we would expect to see some lower lows and lower highs form. This suggests we may see a short term pullback into the consolidation lows or into the higher time frame lows of $1707.00. A bearish rejection at these levels could invite the current sellers an opportunity to add to their positions.

Did you see our Week Ahead Analysis? You can see it here.

Enjoy low spreads and quick trade executions with a live account. Our highly committed customer support team will assist you from your quick account setup to any future concerns. Start trading with Blueberry Markets today.

About The Author

Jonathan Kibbler

Jon Kibbler, our Senior Market Analyst, boasts over a decade of trading experience. He specializes in dissecting the intricacies of financial markets and sharing his expertise with precision. Jon’s insights have been featured at renowned events and platforms like Coindex, Forex Analytix, and Forex.com.

See author's posts