- Gold trades -0.12% lower on Friday after a dismal week.
- The price is consolidation after hitting a low of USD 1848.84 per troy ounce.
Gold 1-hour chart
It has not been the best week for the gold bugs as the yellow metal has fallen 4.36% since Monday. At the end of the week, the price has started to consolidate at the USD 1865 per ounce area. This does not mean the move lower is over, it just means there is some balance for now.
Looking ahead to next week, if the price breaks the wedge type pattern it could help us determine the short term direction. This is more likely to be in the downward direction as the trend is lower at the moment. If this is the case the wave low at USD 1848.84 per ounce could be the target.
If the price does move higher the orange resistance level could be a sticky point for the bulls. Beyond that, there is also another resistance area at USD 1907.27 per troy ounce. The bulls would like to see a break of the level as it could be an indication that the bull trend is back on.
On the weekly chart, this is still a clear uptrend and this move lower looks like a retracement. For now in the medium to short term the trend is still moving lower and trying to catch a falling knife is a dangerous game.
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