Gold Prices Stagnant
As the world enters the Christmas and New Year holidays, the gold market appears to be stagnant with a narrow range of fluctuations. However, experts warn that, although this calm is typical in the end of the year, investors need to be cautious with increasingly positive global economic signals.
On the 4-hour chart, gold is currently trading around $2,626/ounce, having just bounced off the important support zone at $2,615 but is still under pressure from the 34 EMA. The next strong resistance zone is located at the 89 EMA at $2,640, which acts as a major obstacle to the current recovery effort. If the price fails to break through this zone, the bearish momentum is likely to return. Meanwhile, the nearest support continues to be the $2,615 zone, followed by $2,600 and further to $2,580 if selling pressure increases. The recent candlestick pattern shows the formation of higher lows, but not strong enough to confirm a bullish reversal.
The RSI indicator, if below 50, shows that selling pressure is still dominant. In the short term, if the price breaks below $2,615, there is a high possibility of further decline to $2,600 or lower.
On the 4-hour chart, gold is currently trading around $2,626/ounce, having just bounced off the important support zone at $2,615 but is still under pressure from the 34 EMA. The next strong resistance zone is located at the 89 EMA at $2,640, which acts as a major obstacle to the current recovery effort. If the price fails to break through this zone, the bearish momentum is likely to return. Meanwhile, the nearest support continues to be the $2,615 zone, followed by $2,600 and further to $2,580 if selling pressure increases. The recent candlestick pattern shows the formation of higher lows, but not strong enough to confirm a bullish reversal.
The RSI indicator, if below 50, shows that selling pressure is still dominant. In the short term, if the price breaks below $2,615, there is a high possibility of further decline to $2,600 or lower.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.