Gold Outlook

Yesterday, gold lost 13.95$ and closed at 1819.82$ and traded in a decent market range of 36.27$. Currently, gold has registered a double top around 1844$ which will restrict the upside move, followed by the 14-DMA standing at 1850$. If the decline extends further, the initial target will be at 1786$, a 61.8% retracement on the rise from 1703$ to 1921$. The MACD and the Stochastic Oscillator have maintained their declining trend suggesting sideways to lower price movement is possible in the near term. I therefore suggest investors to view any upside as an opportunity to ‘Sell’,short term, keeping stoploss above 1844$. Support and resistance are present at 1804.01$ and 1833.04$, respectively.

By
M.Zohaib Gadit
Forex Trading Consultant