Gold Price Plunges From High


Gold price plunged from highs above $1,195 yesterday and is currently trading in a sideways manner in a range of $1,181 to $1,186. What is next?

28 September, GKFX – Gold price dropped to a four-week low of $1180. This happened as the US dollar strengthened following the Fed’s monetary policy statement on Wednesday. In the statement, the committee said that a strong US economy continued to support further rate increases.

This led to a belief that another hike will happen in December. Three more hikes will follow in 2019. A strong dollar often leads to a drop in gold mainly because gold is mostly listed in dollars and that most traders view it as a safe haven.

Gold Sell-Off Could Resume

A break below $1,181 would signal a continuation of the sell-off from the highs above $1,195 and could yield a re-test of the August low of $1,160. The 5-day and 10-day moving averages (MAs) are trending south in favor of the bears.

Only a daily close above the 10-day MA would abort the bearish view.

15-minute chart

Current Price: $1,184

Daily High: $1,186

Daily Low: $1,182

Trend: Bearish

Resistance

R1: $1,192 (5-day moving average)

R2: $1,200 (psychological level)

R3: $1,205 (50-day moving average)

Support

S1: $1,181 (range low)

S2: $1,172 (Aug. 17 low)

S3: $1,160 (Aug. 16 low)

Disclaimer

This article was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.

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