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Gold prices continued their downward trajectory as predicted in the previous report, nearing the first official target set at $1945. Early trading in the current session saw gold hitting its lowest level at $1947 per ounce.
Upon examining the 4-hour time frame chart from a technical perspective, the bearish technical formation still negatively influences gold prices. Additionally, daily trading remains below the 1966 resistance level, compounded by the continued downward pressure from the 50-day simple moving average.
In light of these factors, the bearish momentum persists, with a crucial focus on the breakout below $1945, representing the 50.0% Fibonacci retracement level. This level holds significant importance for the short-term trend, and breaching it would pave the way for a direct descent towards the official stations at $1939 and $1934.
It’s essential to note that gold’s ability to maintain stability above $1945 and regain trading ground above $1966 would halt the bearish scenario, potentially leading to a retest of the 38.20% correction level at $1977.
Investors are cautioned as high-impact press talks, specifically “Federal Reserve Governor Jerome Powell’s talk” and “European Central Bank Governor Christine Lagarde’s talk,” are expected today, potentially causing substantial price fluctuations.
Given the ongoing geopolitical tensions, the level of risk remains high, and investors should brace for significant price volatility in the market.
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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