📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

Gold Struggling Near Previous Record Highs, Showing Signs of Weakness

Published 01/17/2024, 02:20 AM
  • Bearish correction underway?
  • A lot of rate cuts are now priced in
  • Fib bounce may be a bearish signal
  • Gold is trading a little lower on Tuesday after bouncing higher once again in recent sessions.

    The yellow metal remains buoyed by very aggressive rate-cutting expectations, particularly in the US, but at the same time, it is struggling to generate fresh momentum around the prior record highs, near $2,070.

    We saw a spike in early December well above this but the timing of the move and the speed with which it reversed it suggests the market was never fully behind it, so the prior highs continue to look like a significant psychological threshold.

    From a technical perspective, the lost momentum is evident in the repeated failure in recent weeks to surpass the prior highs, albeit with the spike in December arguably not reflecting true market sentiment at the time, hence the swift reversal.Gold-Daily Chart

    It has since broken below a rising trendline which may further reinforce the view that the rally since early October is running on fumes and a correction is potentially underway. As you can see from the 4-hour chart below, the rebound from Thursday’s low both appears short-lived but also ran into strong resistance around the 61.8% Fibonacci retracement level – 28 December high to 11 January low. This again could be viewed as another bearish signal.Gold-4-Hour Chart

    Original Post

Latest comments

Loading next article…
Risk Disclosure: 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.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.