December 05, 2023 (MLN): International spot gold soared to a new record high of $2,135, but encountered strong resistance from sellers who pushed it back within the previous range.
The price movement toward the highs suggested a swing failure pattern (SFP), with yesterday's daily closing also below the prior highs.
This cast doubts on the strength of the breakout, as a breakout of this significance (four attempts spanned over a period of ~3.5 years) should normally trigger a substantial rally.
Instead, it faced substantial selling pressure, pushing it down as much as 5% from the highs in yesterday's intraday session.
| Support Levels | ||
|---|---|---|
| $2,010 | $1,990 | $1,974 |
| S1 | S2 | S3 |
| Resistance Levels | ||
|---|---|---|
| $2,040 | $2,060 | $2,102 |
| R1 | R2 | R3 |
XAU/USD Weekly Time-Frame Chart
XAU/USD Monthly Time-Frame Chart
The level of ~$1,974 is the critical support for the gold bulls, and losing it could trigger more downside pressure. There is not much support between this level and the low $1,800s.
To resume the upward momentum, the price should stay above $1,974, and buyers need to step in quickly.
It is pertinent to note that on higher timeframes, gold remains in an upward trend unless the ~$1,974 levels gives in.
Disclaimer: The views and analysis in this article are the opinions of the author and are for informational purposes only. It is not intended to be financial or investment advice and should not be the basis for making financial decisions.
Copyright Mettis Link News
Posted on:2023-12-05T22:32:39+05:00
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