After today’s impactful economic data announcement, bears gained renewed strength, keeping gold below the crucial support level at $2004. Signals from building permits and initial unemployment claims have reinforced dwindling expectations for an interest rate cut.
These economic data led to renewed American strength again during today’s session, which makes it likely that the selling pressure on the yellow metal will extend even before the next meeting of the Federal Reserve.
Gold has maintained its clear bearish trajectory, as I highlighted in my latest analysis. Prices could reach the next support level at $1,979 before the weekly close.
There could be some reversal as there is significant support at the 200 period daily moving average at $1,976 on the daily chart. There is a possibility that bulls will concentrate in a range between $2,013 and $2,002 during this week.
But the slope of the 9 and 18 daily moving averages below the 50 daily moving average indicates that the current trend is exhausting, and it is likely to become more severe if both moving averages form another “bearish cross” on the daily chart during the coming week. A move below the 200 DMA is expected to continue keeping the downtrend intact over the next few weeks.
Watch the attached video that I uploaded on January 15, 2024
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Evacuation responsibilaty: The author of this analysis may or may not have any position in . Readers may take any buy or sell position at their own risk.
2024-01-19 07:14:00
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