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  • Just as it looked like the bulls were coming back in there was a distinct lack of momentum at the end of the week.
  • Gold is trading 0.35% higher on Friday in a lacklustre session.

Gold weekly chart

The gold weekly chart below shows a distinct lack of direction for this week. The market participants were looking toward the Fed in the middle of last week for some clarity but once again it seems the market heard nothing new or it was not enough to excite the gold bugs.

On a technical level, the target is a clear one. USD 1765.38 per troy ounce needs to be taken out for the uptrend to continue. This week the bulls had a hold on the market following the sell-off in equities but could not even manage to take out the previous wave high at USD 1745.12 per troy ounce.

On the downside, there are some key levels to break to give us a bearish indication. The first is the black upward sloping trendline. If this is broken the short traders could be looking at the red support line at USD 1669.88 per troy once. Then it will be game on for a trend reversal as a lower high lower low formation would be made. 

For now, the uptrend is still intact, but only just. It will be interesting to see if there is some more rotation into the precious metal leading into the close. I know for sure that not too many traders will want to hold risk into the weekend with the number of COVID-19 cases increasing in the US.

Gold price analysis

Additional levels

 

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