Gold tests previous swing lows

The bullion was sold-off on Friday and it was down circa one percent ahead of the US session, trading at around 1,925 USD.

That seems to be an important support, which has held a couple of times during this week. Therefore, if bears push the price below 1,925 USD, stop losses of long positions will be hit, which might lead to a further decline, targeting the 1,900 USD. Moreover, the short-term trend would most likely switch to bearish.

The next level to watch will be near 1,880/70 USD, where the previous week's strong sell-off ended. If gold drops below this level as well, the latest bull market might be over and a larger correction toward 1,800 USD could occur. 

Alternatively, the resistance seems to be near 1,955 USD and if broken to the upside, gold might continue higher toward 1,980 or 2,000 USD.

The greenback is rising today, which might be negative for the bullion and traders could start taking some profits from the recent mega rally. 
Cookie Policy: The Axiory website uses cookies and by continuing using the website you consent to this. Risk Warning: Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital. Please read the full Privacy Policy.