GOLD : Resistance Going Strong
(Fri, 19 Jun 2020). XAU/USD rally at multi-year trend extremes, bulls at risk on sub level 1733.
Gold prices are down more than 0.30% this week with XAU/USD continuing to range just below a critical multi-year resistance slope we’ve been tracking for months now. The broader rally remains vulnerable while below this threshold an we’re looking for a break of this near-term range for guidance. These are the updated targets and invalidation levels that matter on the gold weekly chart.
GOLD PRICE CHART - XAU/USD WEEKLY
Initial weekly support steady at the March high-close at 1673 backed by the 38.2% retracement of the yearly range at 1645- losses should be limited to this threshold IF price is indeed heading higher. A breach of the monthly opening-range highs would keep the focus on subsequent resistance objectives at the 2012 high at 1795 and the record high-week close at 1856.
Bottom line: The broader gold price rally remains vulnerable while below this threshold – from a trading standpoint, the immediate focus is on a break of the 1673-1733 range for guidance with the long-bias at risk while below the upper parallel. Ultimately, a larger decline may offer more favorable entries closer to uptrend support. Note that the length of time spent at these levels suggests that a topside breach would likely fuel an accelerated rally in price – use caution.
GFS ASIA TEAM
- just now