Where will the bears push gold?
Dear friends,
Today, gold continues to operate in a downward trend channel, as evidenced by its price breaking out of the previous upward channel and dipping below $2,020 in Wednesday's US trading session. At the time of writing, the price is trading around $2,016, showing a 0.12% recovery for the day.
Meanwhile, the Bank of Canada (BoC) has announced that it will maintain its benchmark interest rate at 5% in line with its January policy. This statement is slightly more hawkish than expected, reducing the likelihood of an interest rate cut in April to about 40%. However, the stock market remains positive as Wall Street resumes its record-breaking rally due to better-than-expected earnings reports signaling economic health, which has a negative impact on gold.
The 4-hour chart shows a long bearish candlestick from the previous peak of $2,036 down to $2,011, stabilizing within this downward channel despite a slight correction. Further evidence for this bearish momentum is provided by the 34 and 89 exponential moving averages (EMA), indicating a potential further decline. Immediate resistance is seen at $2,019, with immediate support at $2,011. Breaking below this support level will open up more opportunities for further decline in this precious metal.
Today, gold continues to operate in a downward trend channel, as evidenced by its price breaking out of the previous upward channel and dipping below $2,020 in Wednesday's US trading session. At the time of writing, the price is trading around $2,016, showing a 0.12% recovery for the day.
Meanwhile, the Bank of Canada (BoC) has announced that it will maintain its benchmark interest rate at 5% in line with its January policy. This statement is slightly more hawkish than expected, reducing the likelihood of an interest rate cut in April to about 40%. However, the stock market remains positive as Wall Street resumes its record-breaking rally due to better-than-expected earnings reports signaling economic health, which has a negative impact on gold.
The 4-hour chart shows a long bearish candlestick from the previous peak of $2,036 down to $2,011, stabilizing within this downward channel despite a slight correction. Further evidence for this bearish momentum is provided by the 34 and 89 exponential moving averages (EMA), indicating a potential further decline. Immediate resistance is seen at $2,019, with immediate support at $2,011. Breaking below this support level will open up more opportunities for further decline in this precious metal.
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