Gold Fundamental and Technical Analysis
By Deya Hroob
Summary :
Weekly Chart : Gold trading in a Falling Channel.
Daily Chart : Price broke down the Descending Triangle
Gold prices fell on Friday to their lowest level in a week, and are heading for the second consecutive weekly and monthly decline as brighter economic prospects and concerns about inflation support the US Treasury yields.
Gold fell to $ 1717, and also price fell 1.9% on Thursday as record US Treasury yields reached their highest level since the start of the pandemic, boosting the dollar.
Higher inflation boosts gold, but it also raises treasury yields, which in turn increase the cost of owning the yellow metal.
If we look at the weekly chart, we can clearly see that Gold has been trading in a falling channel. To trade this pattern, we have to wait for the price to break through either trendline.
On the daily chart, The precious metal declined sharply and broke down the support structure. Now further losses is expected, the area between 1,700 and 1,680 is the next support to look at.
On the flip side, any recovery will find resistance from the broken structure.
Trade Wise and Good Luck,
Comments
Post a Comment