In the world of commodities, Gold has always been a safe haven for investors. However, recent technical analysis suggests a different story. The precious metal, often seen as a hedge against market volatility, is currently facing a bearish trend, raising questions about its future performance.
According to the latest market analysis, Gold’s price has halted its descent at the local support level of 1912, indicating a potential shift in the market dynamics. This has resulted in a sideways formation of the range between 1938 and 1912. The Moving Average 50 (MA50) is acting as a local support, while the MA-200 continues to exert pressure as resistance.
Despite the temporary halt in the price drop, the medium-term outlook for Gold is not very optimistic. Analysts expect a fall from the resistance, a possible retest of the support of 1912, and a further fall after a breakthrough. This suggests that Gold might be entering a high-risk phase, which could impact its traditional role as a safe investment.
Adding to the complexity, Gold is showing signs of recovery after last week’s significant drop. A correction is forming, and the price is testing the key level of 1935. However, the bearish trend prevails. Analysts predict that the price may strengthen towards 1939, to overcome the local maximum of 1937.3, after which the fall may continue.
Furthermore, Gold futures bears have a slight short-term technical advantage. A 6-week downtrend has appeared on the daily bar chart. The next near-term downside objective for bears is to push futures prices below solid technical support at $1900.
Investors are advised to keep a close eye on the market dynamics and exercise caution. As always, it’s crucial to remember that these analyses are not financial advice, and investors should always conduct their own research before making any investment decisions.
