Gold is under selling pressure 26/5/2023

Gold prices achieved the negative consideration, as we expected within the corrective decline mentioned during the current week’s trading, touching the required official station 1945 and touching the additional target 1936, recording its lowest level at $1936 per ounce.

Technically, the intraday movements witness stability above 1945, Fibonacci correction 50.0%. Moreover, we find the stochastic started to provide positive crossover signals. On the other hand, the simple moving averages are still pressuring the price from above, accompanied by the clear negative signs on the 14-day momentum indicator.

The chances of continuing the downside trend are still valid and effective, knowing that the decline below 1935 initially facilitates the task required to complete the drop towards 1921.

In general, we suggest the overall bearish direction as long as daily trading is stable below the 1977 resistance level of 38.20% correction.

Note: Today, we are awaiting high-impact economic data issued by the US economy, “personal consumption spending,” and we may witness high price fluctuations at the time of the news release.

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: 1935.00	R1: 1962.00
S2: 1921.00	R2: 1977.00
S3: 1906.00	R3:  1990.00