Back to Blog

Gold (intraday): Downside potential

This morning a bit of weakness has greeted the early session, with bids pushing the gold market below the 1750 area. After the recent strength seen in the market, the precious metal consolidated between 1733-1790. The formation of a double top on the daily chart suggests that there is some downside potential in the market. As the bulls are losing their momentum a break below 1742 would expose resistance at 1738 and 1729. Although the intraday bias is negative, we should note that gold is in a strong long-term bullish trend and therefore short-term weakness can be seen an a good buying opportunity. As long as the 1660 support level remains intact (and with the central banks keep pressing CtrL+P), gold is expected to continue its grind higher. Economic data pick up today again with US Jobless Claims and Phil Fed Survey among the most notable.

Dafni Serdari
Market Analyst
Disclaimer
The comment in this blog is the personal opinion of the contributors and not InterTrader.com. The content does not constitute financial, investment or tax advice. You are advised to discuss your specific requirements with an independent financial adviser prior to entering into any bet. InterTrader.com is not responsible and disclaims any and all liability for the content of comments written by contributors to the blog, and the content of any third party sites linked from this blog.

Share this post

Back to Blog

Spread betting and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading these products with this provider.
You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money.