CFD News: Gold Continuation Watch?

November 22, 2022
by Joseph Jeffriess, Market Analyst

Gold continuation watch

Hi, and welcome to Tuesday’s update. We are looking at Gold today as, finally, we are seeing some decent buying after a four-day decline.

Price has been one-way until this latest correction. That’s the question today. Is the correction coming to an end? A lot will come down to the USD. For now, it’s starting to confirm a lower high. This is definitely a help for Gold as of late, it has been rising off a weaker USD.

Today’s buying has started to confirm a higher low after yesterday’s rejection stopped above a previous level of resistance. This is a good sign as it show’s a normal trend reaction. I have marked a fib retracement, and the current higher low is above the 38% point. Yes, that’s fast, but for the 1st pullback after the upleg this might be a worry at this stage.

So what we want to see is buyers continue to push higher today, with the move beating yesterday’s high. A close above 1745 would also be fine if they don’t break yesterday’s high, but we want to see it broken on tomorrow’s bar.

If today’s rally fades and we see price back close to today’s open, that’s a worry and could be telling us that sellers are still pushing. We would want to keep sitting if that does happen and wait for more evidence that a continuation is on the cards.

Keep in mind Thursday’s FOMC meeting minutes and US services data. This could have an impact.

Gold Daily Chart

All times are AEST.