Gold Bulls Likely to Surrender Soon
2023.09.12 09:19
Upon in-depth analysis of the movements of the futures in the 4 Hr. chart, I find a thick presence of big bears above $1953 as the recently announced job data indicates that the bears may remain in control.
Despite several attempts since September 6, 2023, gold futures have failed to overcome a significant resistance level at 200 DMA and stay at $1953 in the 4-hour chart.
This week, gold futures are expected to continue experiencing exhaustion, with the regaining strength since the conclusion of the G-20 Summit and global geopolitical issues still causing concern.
It appears that gold futures could follow the same downward trend they experienced from August 11, 2023, to August 17. Currently, the selling pressure seems to match the buying pace, with gold futures finding support at $1913.
This is due to worries about the next steps the Federal Reserve will take to control inflation, including the possibility of further rate cuts during the upcoming meeting on September 19-20, 2023.
I believe that there is a high probability of gold futures falling even further this week. Unless gold futures hold the strong support level at $1919, the next support level is likely to be tested before the Fed meeting.
If gold futures break down below $1913, the price may drop below $1882, which is the next strong support level that could encourage the bulls to enter the market once again.
However, a reversal by gold futures is unlikely if they break down below $1930 during today’s trading session.
Disclaimer: The author of this analysis may or may not have any position in the Gold futures. Readers can take any long or short trading position at their own risk. Involved risk in trading needs to be taken care of before creating any trading call.
