Gold needs price catalysts to resume the rise 8/11/2022

Gold prices did not show strong movements during the last session’s trading after the big gains it achieved last Friday, reaching the level of $1681 per ounce.

Technically, we find gold retesting the previously breached resistance and turning it to a support level around 1666, which is still stable above it. With careful consideration of the chart, we find stochastic trying to get rid of the current negativity, in addition to the continuation of providing the 50-day simple moving average to the positive motive.

From here, and steadily, daily trading is above the 1660 Fibonacci correction of 23.60%, which supports the possibility of continuing the rise, targeting the 1678 first target, and its breach will reinforce gains towards the awaited official station 1687, 38.20% correction.

The decline below 1660 can thwart the bullish scenario and put the gold price under strong negative pressure, whose first objective is to retest 1648.

Note: the US Congress “House of Representatives” elections is due today and have a high impact and we may witness clear fluctuations in prices at the time the results are released.

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: 1660.00	R1: 1678.00
S2: 1648.00	R2: 1687.00
S3: 1639.00	R3:  1693.00