Gold Analysis: Breaking Below $1775 Will Confirm More Selling
Gold was consolidating losses for most of the day, but it finally tested in a sideways price movement nearly $1778 price zone.
The mixed USD data and RBNZ's rake hikes kept XAU/USD on downside pressure. Though gold still holds above the rising trend-line support, the central bank's rate-hiking bias may hurt gold's upside rally.
As long as gold holds above $1775/1777, gold won't go for long-term sell conditions. But the market behavior seems a bit tricky and waiting for some catalysts.
From my experience, I think gold may drop more. However, downside pressure won't finish next couple of days, and gold may test the $1720/1725 price before it pulls back to the upside. But don't get panic as long as gold breaks below the trend line support at the $1775.
December to February is a good month for buying gold. Most of the time, gold goes upside during December to February. So, we hope there won't be any change this year as well. So, before it goes up, some more downside correction is expected.
I am not scared of dropping the gold price for technical reasons or other financial facts. But if all the central banks increase their bank rates, then gold might not go up.
If investors buy higher rates currency, they are going to get more interest rates. But gold never pays a favorable interest rate. That's when bank rates are high, and gold can't go up quickly. So, let's see what happens.
Just keep in mind, from the present rates, gold still has the chance to test the $1800 and finally $1830 price zone.
On the other hand, breaking below $1775 price zone, keep selling and keep you first target $1760/1758 price zone And final downside target is $1720/1725 price zone.
The mixed USD data and RBNZ's rake hikes kept XAU/USD on downside pressure. Though gold still holds above the rising trend-line support, the central bank's rate-hiking bias may hurt gold's upside rally.
As long as gold holds above $1775/1777, gold won't go for long-term sell conditions. But the market behavior seems a bit tricky and waiting for some catalysts.
From my experience, I think gold may drop more. However, downside pressure won't finish next couple of days, and gold may test the $1720/1725 price before it pulls back to the upside. But don't get panic as long as gold breaks below the trend line support at the $1775.
December to February is a good month for buying gold. Most of the time, gold goes upside during December to February. So, we hope there won't be any change this year as well. So, before it goes up, some more downside correction is expected.
I am not scared of dropping the gold price for technical reasons or other financial facts. But if all the central banks increase their bank rates, then gold might not go up.
If investors buy higher rates currency, they are going to get more interest rates. But gold never pays a favorable interest rate. That's when bank rates are high, and gold can't go up quickly. So, let's see what happens.
Just keep in mind, from the present rates, gold still has the chance to test the $1800 and finally $1830 price zone.
On the other hand, breaking below $1775 price zone, keep selling and keep you first target $1760/1758 price zone And final downside target is $1720/1725 price zone.
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