Gold Bulls Likely to Surrender Soon
Satendra Singh | Sep 12, 2023 20:09
Upon in-depth analysis of the movements of the Gold futures in the 4 Hr. chart, I find a thick presence of big bears above $1953 as the recently announced job data indicates that the bears may remain in control.
Despite several attempts since September 6, 2023, gold futures have failed to overcome a significant resistance level at 200 DMA and stay at $1953 in the 4-hour chart.
This week, gold futures are expected to continue experiencing exhaustion, with the US dollar index regaining strength since the conclusion of the G-20 Summit and global geopolitical issues still causing concern.
It appears that gold futures could follow the same downward trend they experienced from August 11, 2023, to August 17. Currently, the selling pressure seems to match the buying pace, with gold futures finding support at $1913.
This is due to worries about the next steps the Federal Reserve will take to control inflation, including the possibility of further rate cuts during the upcoming meeting on September 19-20, 2023.
I believe that there is a high probability of gold futures falling even further this week. Unless gold futures hold the strong support level at $1919, the next support level is likely to be tested before the Fed meeting.
If gold futures break down below $1913, the price may drop below $1882, which is the next strong support level that could encourage the bulls to enter the market once again.
However, a reversal by gold futures is unlikely if they break down below $1930 during today’s trading session.
Disclaimer: The author of this analysis may or may not have any position in the Gold futures. Readers can take any long or short trading position at their own risk. Involved risk in trading needs to be taken care of before creating any trading call.
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.