Dark Mode
Image
Saturday, 28 January 2023
After hitting a floor at 1,920, gold is struggling to extend its losses.

After hitting a floor at 1,920, gold is struggling to extend its losses.

Gold prices are consolidating around the crucial level of 1,920, which is the 38.2 percent Fibonacci retracement level of the leg from 1.680 to 2,070.40 and confirms the pullback from the 1,950 resistance and the 20-day simple moving average from last week (SMA).

The short-term bias appears negative as the MACD continues to fall below its red signal line, while the RSI appears to be approaching the 50-neutral threshold, though both indicators must continue to fall to confirm the negative momentum the pair manages to break the 38.2 percent Fibonacci, the 1,895 support and the 40-day SMA now at 1,890 might be a trigger point for stronger negative activity. Lower, support might come from the 50.0 percent Fibonacci level of 1,877, which was a significant barrier last year, while further sellers could push the price to the 1,853 key level, which is just above the uptrend line.

If the pair moves back to the upside, investors should keep an eye on the 1,950 resistance level and subsequently the 23.6 percent Fibonacci level of 1,978, which coincides with the Ichimoku indicator’s red Tenkan-sen line. If the price rises further, resistance might be found near the 19-month high of 2,070.40. In the short term, the drop from the multi-month high has converted the bullish perspective into a bearish one.

However, as long as the yellow metal remains above the ascending trend line and the 200-day SMA, prospects for another positive advance are increasing.

Comment / Reply From