The next major technical support area in gold
Gold has had a pretty strong sell-off at the start of the week and that leads traders and analysts to look for potential support levels on the higher timeframes. The technical signals to the downside have been pretty strong and there are some interesting price points close by.
The weekly chart below shows there is an upward sloping trendline that could provide some respite for the bulls. Beyond that, the stronger level of support could come from the green area close to $1800/oz. The major level on the chart is the blue consolidation low at $1671.70/oz. The price has tested the area four times and bounced heavily on all occasions.
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The Fed's dilemma is 'as great as any since the 1970s' - Bridgewater's Dalio |
The current strength in the U.S. dollar is causing all kinds of problems in the commodities markets. The dollar index is trading at 103.80 a 16.79% rise since 4th January 2021. It is also the highest level the dollar index has traded since 2nd January 2017.
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