Forex Chart Of The Day: Gold Rejects $1800.00

The price of Gold has rejected the key $1800.00 level, if this momentum continues could we see Gold prices move even lower?

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Gold Analysis

In recent US news, the ISM Services PMI came in above the previous and the forecasted expectations, which saw the numbers move from 54.4 to 56.5. A number above 50 indicates industry expansion and is a leading indicator of economic health. This number has sparked strength in the USD as the data shows the economy is still expanding. This information could make the upcoming decision by the Fed harder as this could lead to more spending in the economy and higher inflation.

This recent data would put pressure on the price of Gold and, as we can see from the chart, the price has rejected the $1800.00 level. On the 4hr chart, the price formed a double top pattern with the neckline support level at $1781.00. If the price holds below this level of $1781.00 we could expect the market to retest the neckline of the trading pattern and form a lower high before continuing to the downside. Price would also need to get through the trendline support before breaking lower toward the $1725.00 low.

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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.

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