Market Update: Gold testing its trend
Hi, traders, today we’re taking a look at gold on its daily chart as sellers have started to test the current uptrend.
There are a few things going on on the current daily chart. First, we want to point out the overall consolidation that price currently remains in. Moving through that we see a new LH point that continues the current downtrend. This point didn’t look so great until sellers gave it some new meaning last Friday with a firm decline. Today’s action continues that decline with price now moving through the inside uptrend that has held since the last support hold.
Sellers face short-term support and main support if they can continue the more. A break of these levels could confirm a resumption of the longer-term downtrend. As it’s still inside action, a break of the 1723.50 level could be quite significant. We would need drivers like the USD to play ball to help something like that occur. A hold and rally off either support could show sellers are weak and price could try to make a new test of ST resistance if buyers could regain control.
For now, we will be waiting to see if sellers can get back down to and break ST support.