Gold Faces Bigger Selloff if Support Fails
XAU/USD
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Gold
+0.12%
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Position added successfully to:
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Type:
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Date:
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Price
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Leverage:
1:1
1:10
1:25
1:50
1:100
1:200
1:400
1:500
1:1000
Commission:
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There’s so much uncertainty today that I think the markets are uncertain about being uncertain.
I know gold is sure trading like it.
With so much uncertainty in the world today, it’s not surprising that gold prices remain elevated. But each time it looks like a breakout is imminent, the price of gold slides back a bit.
Today’s “daily” chart of gold highlights this tug-o-war. As you can see, the price of gold is in a wide trading range (blue-shaded area). But it is trading near the top of that range.
Gold Daily Chart
That said, the price has slid back a bit of late to an area that has been prior resistance (now support). This support has dual strength as the price is also approaching its up-trend line at (1).
This support test looks to be important for gold as it tries to remain within reach of a breakout. If support fails, it could face a bigger decline.
