Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Gold prices demonstrated limited movements in the previous trading session, characterized by a prevailing downward trend. As highlighted earlier, breaching the 2016 level aims for a touchpoint at 2005, potentially reaching its lowest level at $2009 per ounce.
From a technical standpoint, the price has returned to stability above the pivotal support level for current trading levels, situated at the 2016 price marked by the 38.20% Fibonacci retracement. This lends support to the possibility of an upward movement. However, the presence of simple moving averages poses a hindrance to the price, with the 50-day average converging near the resistance level of 2027, adding additional strength to this barrier.
Given the conflicting technical signals and the ongoing sideways price range, a cautious approach is favored, with a preference to monitor price fluctuations until clear signals emerge to indicate the direction. Potential scenarios are outlined as follows:
Upward Trend:
Dependent on the price’s cohesion and stability above 2027, particularly 2034, which would act as a motivating factor enhancing the likelihood of an upward move towards 2043 and 2065.
Downward Trend:
This necessitates a clear and robust break of the support levels at 2016 and 2011, targeting 2002 and 1995 as designated stations.
Warnings:
- Risk level is high.
- The overall risk is elevated due to ongoing geopolitical tensions, possibly leading to increased price volatility.
Traders and investors are advised to exercise caution and employ risk management strategies given the dynamic market conditions and potential for heightened volatility in response to geopolitical developments.
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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