See also
Gold is trading around 3,331, above the 4/8 Murray level, and within the downtrend channel formed since early August.
Friday's bullish momentum, fueled by Powell's dovish comments, pushed gold from the lows of 3,322 up to near 3,380, reaching the top of the downtrend channel.
If gold breaks above the 5/8 Murray level, we could expect a further bullish move. Therefore, the metal could reach the 6/8 Murray level at 3,398 and even the 7/8 Murray level at 3,417.
As long as the gold price remains below the psychological level of $3,400 in the short term, the technical scenario suggests taking short positions with a target of pressure levels around the 0/8 Murray level at $3,281.
Once gold consolidates above $3,400 on the daily chart, it will be a good point to open long positions with a short-term target around the 8/8 Murray level at $3,500.
As long as the gold price remains within the downtrend channel, it will be seen as an opportunity to sell below 3,378 or 3,359.
Resistance is located at 3,378, 3,398, and finally at 3,417.
Support is located at 3,359, 3,349, 3,339, and finally at 2/8 of the Murray line at 3,320.
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*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.