Gold Price Analysis: Trapped in descending triangle amid risk-off

Posted 23 March, 2020

Gold is struggling with new risks in the markets, as prices are in the form of a falling triangle on a 4-hour chart.

So far, the top of the triangle, currently priced at $ 1,508, has proven to be a tough nut to crack. The decline will mark the end of sales from recent highs above $ 1,700 and could rise to $ 1,550.

Alternatively, splitting the triangle may continue selling from $ 1,700 and show support at $ 1,445 (the lowest in November).

At the time of press, yellow metal changed hands at $ 1,466 an ounce, up 0.11% per day, although futures for the S&P 500 fell 5%.

“There was an economic tsunami. Economists seem to have agreed on the biggest drop in global GDP per generation, ”said Mark Chandler, chief market strategist and managing partner at Bannockburn Global Forex.

Even as a result, given the global exchange rate of the US dollar, the price of gold fell 5.6% compared to the previous month. The green exchange rate has become a preferred haven, with the dollar index rising more than 4% this month.

 

4 hour chart

Trend: Bullish above $1,508

 

Technical levels

 

XAU/USD

OVERVIEW
Today last price
1495.74
Today Daily Change
-3.32
Today Daily Change %
-0.22
Today daily open
1499.06

 

TRENDS
Daily SMA20
1596.02
Daily SMA50
1582.85
Daily SMA100
1535.3
Daily SMA200
1503.19

 

LEVELS
Previous Daily High
1516.19
Previous Daily Low
1455.54
Previous Weekly High
1561
Previous Weekly Low
1451.3
Previous Monthly High
1689.4
Previous Monthly Low
1547.56
Daily Fibonacci 38.2%
1493.02
Daily Fibonacci 61.8%
1478.71
Daily Pivot Point S1
1464.34
Daily Pivot Point S2
1429.61
Daily Pivot Point S3
1403.69
Daily Pivot Point R1
1524.99
Daily Pivot Point R2
1550.91
Daily Pivot Point R3
1585.64

 

Next forecast

20 March, 2020 09:26

Gold: Marks three-day losing streak, towards $1,450, despite fresh risk-off →

Gold prices remain on the back foot amid broad US dollar strength. The fresh coronavirus headlines from the UK and US renew risk aversion but the shift to safe-haven flows help the greenback. Combat against the virus can offer fresh impulse, the economic calendar will provide intermediate bounces.

Gold: Marks three-day losing streak, towards $1,450, despite fresh risk-off
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