This precious metal is testing support-turned-resistance once again!
Will you still hold out this time?
This is what I see on the 4 hour time frame.
Gold (XAU/USD) 4 hours Planned by TV
This safe haven commodity has been rising steadily so far this month, but the rally appears to be hitting a barrier at the $2,000 mark.
This area of interest now extends through the 50% to 61.8% Fibonacci retracement levels, which might be enough to keep the gains in check and bring gold back to its low near $1900.
After all, technical indicators suggest that resistance levels are more likely to hold than to be broken. The 100 SMA is below the 200 SMA to reflect bearish pressure while Stochastic has just reached the overbought area to indicate exhaustion among the buyers.
Then again, gold is trading above both of these moving averages, so it could hold as dynamic support on dips. Also, the gap between the indicators is narrowing to indicate a possible bullish cross.
In this case, the price might be able to break through the $2000 mark and proceed to a rally all the way to a high of $2066!
The risk-off reaction may be enough to keep these safe-haven assets afloat in the next few days, especially as market addicts remain wary of the risks of a global recession stemming from China’s poor economic performance.
Where do you think gold will go from here?