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CFD News: Gold, close to confirming new leg lower?

Published: 09.05.2022
by Joseph Jeffriess

Things have taken a turn back to safe havens with heavy selling resuming into today’s European session. After a small push at a fightback, the floodgates reopened. Stock indices and Crypto markets have been the heaviest hit, with some coins dropping over 11% lower.

Sellers haven’t overlooked Gold as sellers moved back into the yellow metal knocking back below 1862. We see a little bit on-demand around this area, but this may not offer much resistance if this level of selling continues. For now, price looks to have confirmed an LH, but will we see a new LL continuing the current trend with a new point of normal trend behaviour. Furthermore, a move below the trendline would also be a sign that the current fast downtrend controls the market.

A lot will come down to USD demand and continued exit from risk assets as US recession fears continue.

Gold D1 Chart

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