Gold Bears Gaining Ground? Move Below $2,550 Could Signal More Downside Ahead
2024.11.14 02:39
dipped to a two-month low on Thursday while the dollar stood at a one-year high and the hit $90000 on Wednesday amid the changing economic scenario with Donald Trump’s comeback.
In my last analysis, I explained the significant support and resistance levels for the amid Trump’s protectionist stance towards trade and immigration.
Technically, the gold futures have confirmed the surging bearishness and look ready to hit the lows tested in Oct. 2023 and Dec. 2024.
The weekly chart formation of a bearish hammer in the last week of Oct. 2024 was confirmed with one bearish weekly candle in the first week of November, followed by one more bearish candle in the second week of this month.
There is no doubt that the second weekly candle has pushed the gold futures below the 50 DMA, indicating a free fall to continue during the next month of this year. This fall in gold prices remains in a bearish momentum as the gold futures are trading in a downtrend channel.
In the daily chart, the 9 DMA looks ready to cross the 50 DMA shortly after moving below the 20 DMA on Nov.11, 2024. This double bearish formation signals a further decline in gold futures if it finds a breakdown below the next important support at $2552. In such a case, the gold futures could text the major support at 200 DMA which is currently at $2399.
Finally, I conclude that if the gold futures could not defend the significant support at $2424 in the weekly chart, the next target could be $2367. There is no doubt that any short bounce by gold futures above the current levels will attract the big bears to sell profusely.
Disclaimer: Readers are requested to take any position in gold at their own risk and financial capacity. The author of this analyis does not have any position in gold.
