Gold Faces Bigger Selloff if Support Fails
Chris Kimble | May 25, 2023 08:38
There’s so much uncertainty today that I think the markets are uncertain about being uncertain.
I know gold is sure trading like it.
With so much uncertainty in the world today, it’s not surprising that gold prices remain elevated. But each time it looks like a breakout is imminent, the price of gold slides back a bit.
Today’s “daily” chart of gold highlights this tug-o-war. As you can see, the price of gold is in a wide trading range (blue-shaded area). But it is trading near the top of that range.
That said, the price has slid back a bit of late to an area that has been prior resistance (now support). This support has dual strength as the price is also approaching its up-trend line at (1).
This support test looks to be important for gold as it tries to remain within reach of a breakout. If support fails, it could face a bigger decline.
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.