Gold continues its downward path 28/9/2022

Gold’s attempts to compensate for its losses failed yesterday after it found a strong resistance level near 1642, which formed an obstacle that could limit recovery attempts, approaching by a few points from our target of 1618, recording its lowest price at 1622.

Technically, there was no significant change in the movements to find that gold prices maintained negative stability below 1646 resistance, accompanied by the negative pressure of the simple moving averages, in addition to the regular activity within the descending price channel shown on the chart.

From here and steadily intraday trading below 1637 and in general below 1646, the bearish scenario remains the most likely, towards the second target of the previous report 1618, knowing that the decline below the mentioned level extends the losses to be waiting for an ounce of gold around $1605/1608.

Consolidation above 1646 may force gold prices to recover temporarily, to retest 1657 and 1662.

Note: We are awaiting the Federal Reserve’s speech later in today’s session and may witness high price volatility.

Note: Markets are still unstable, and we may see random moves.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 1617.00	R1: 1637.00
S2: 1609.00	R2: 1649.00
S3: 1597.00	R3:  1657.00