Can it recover after Friday’s tumble?
Gold plummeted on Friday as the dollar soared and US yields rose, particularly at the short end of the curve.
The dollar has pared some of those gains at the start of this week which has allowed the yellow metal to recoup some of its losses. But is the damage already done? Is golds dream of recapturing and holding onto $1,800 dashed?
It’s not looking good for gold . Friday’s plunge saw it smash through the lower end of the that had briefly guided it above $1,800 early last week. After running into support around $1,770 – around the 200/233-period band on the 4-hour chart – it’s recovered to test the channel from below.
The bottom of the channel falls around the 50 and 61.8 fib level, so a rebound off here could not only be a correction signal but also a gold in the near term.confirmation of the initial breakout. That could put downward pressure on
The next test is Friday’s lows, a break of which would pierce the 200/233 gold has been quite choppy in recent months after all. The next big test below is $1,740-1,750.band mentioned earlier and could result in further declines. Of course, there’s plenty of support below here,
But the way markets are trading at the moment, I wouldn’t be surprised to see theof recent months continue for a little longer.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.