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  • Gold is trading 0.08% higher in a choppy session for the precious metal.
  • There is a lot of traffic under the current price level that could help the bulls.

Gold 4-hour chart

Gold has taken a dip as risk sentiment flip flops once again. You can see from the chart below the last time the price broke the chart pattern the price moved swiftly higher. Now that the price has printed at a 7-year high there was always a decent chance there could be a pullback.

The question is when to the bulls step back in? The red support line at USD 1744.75 per troy ounce has been used as a resistance zone on multiple occasions. As we know previous resistance often becomes support and when the level is broken but there are some more factors to consider. The 55 and 200 moving averages are close by and they could add to the importance of the level. As well as that, the black trendline is another additional factor adding to the confluence.

The indicators are very mixed at the moment the Relative Strength Index is still above 50 and just moved to tilt higher. Conversely, the MACD histogram is red but the signal lines are well above the mid-point. Another break of the previous high at USD 1765.38 per troy once could mean the bull trend is back on.

Gold Technical Analysis

Additional levels