Strong resistance on gold 1877
2023.01.08 05:33
[ad_1]
Gold’s movements over the past week point to a wild price swing in the face of growing expectations that the Fed will hold off on raising interest rates. This could shift the momentum in favor of the bears because the labor market is still too tight.
Even though gold futures experienced a sharp rise over the past week, the fact that they were unable to break above the significant resistance level of $1877 points to a steep decline ahead if they open with a gap-down.
The interest rate is likely to remain high throughout the year, as indicated by the Fed’s December statement, which could once more drive up gold prices.
Gold Futures Weekly Chart
Technically, gold futures could follow in the footsteps of January and February on a weekly chart. 2022 from January 9 to February 20, 2023, if they are unable to make a long-term move above the immediate resistance level of $1877 this week.
The beginning of a downtrend in gold will be first confirmed on a daily chart if gold futures fall below the significant support at the 9 DMA, which is currently at $1838 during the upcoming week.
Wild price swings will undoubtedly continue in the coming weeks, which may increase uncertainty; however, rallies will attract sellers above the levels that are currently in place.
Due to the fact that gold futures encountered severe resistance at this level prior to a sharp decline in June 2022, I conclude that the weekly closing of gold futures ensures the beginning of a downtrend.
Disclaimer: This analysis’s author does not hold any positions in Gold futures. Any position taken by readers in global commodities is at their own risk.
