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Gold prices are currently experiencing a downward trend after facing resistance at the critical level of 2065, leading to negative stability.
From a technical standpoint today, examining the 240-minute chart reveals emerging signs of negativity on the Stochastic indicator. Simultaneously, clear negative trends are evident on the 14-day momentum indicator. The gold price is trading below the primary resistance for the current levels at 2065, represented by the 23.60% Fibonacci retracement.
Anticipate a bearish trend in the coming hours, with the initial target at 2043, followed by 2037, which acts as an official station. Paying close attention to the 2037 level is crucial due to its significance for the short-term trend. A break below this level could extend losses toward 2016, the 38.20% correction.
On the upside, a return to stable trading above 2065 would invalidate the proposed scenario, prompting gold prices to recover toward 2080, the initial target.
Caution is advised as high-impact economic data is anticipated today, including the “New York State Manufacturing Index” from the American economy, Canadian inflation data, and key updates from the United Kingdom, such as “the change in unemployment benefits” and a speech from the Governor of the Bank of England. Expect heightened price volatility during the release of these news items.
Caution is warranted as the 50-day simple moving average continues to exert downward pressure on the price.
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.
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