Technical Analysis – Gold outlook worsens at new lows; 1,600 level comes in sight



Gold drifted southwards to unlock a new 29-month low at 1,614 earlier today after Tuesday’s recovery attempt ceased at 1,642.

The downtrend extension has opened the door for the 1,600 round level as the RSI and the MACD in the four-hour chart keep lacking direction within the bearish territory, although the rebound in the stochastics is endorsing the current bullish move in the market.

Sliding below the 1,600 psychological mark, the precious metal could seek shelter within the 1,585 – 1,565 zone last seen in the first half of 2020. A continuation lower could take a breather somewhere between 1,545 – 1,535, while deeper, the bears will probably face a tense battle at the channel’s lower band around 1,518.

In the event buying appetite strengthens above the short-term tentative descending trendline at 1,629, traders will look for a break above the 1,642 resistance. If the bulls manage to hold up, all eyes will turn to the 50-period simple moving average at 1,655.

Overall, gold’s 2022 outlook remains grim, and any potential upturns could do little to reverse the bearish trajectory in order to reach the previous high of 1,734.

Latest News


Daily Market Comment – Gold gets its shine back, stocks drift lower amid flight to safety


Technical Analysis – WTI oil futures hit yearly lows; bias negative


Technical Analysis – AUDUSD holds a bullish bias near the 20-day SMA


Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.