Market Update: Gold testing its trend

October 18, 2021
by Joseph Jeffriess, Market Analyst

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.

Gold D1 Chart

All times are AEDT.