Gold prices were supported by the decline in Treasury rates due to the US CPI data coming in line with expectations and fluctuated around this year’s highs. The yield on the US 10-year benchmark bond fell 1 basis point to 1.734 percent, just over 1.80% at the beginning of the week. According to market analyst James Hyerczyk, this indicates that the jump in inflation may have been priced in in the bond markets. Gold technical analysis by James Hyerczyk cryptocoin.com We have prepared for our readers.
Two scenario analysis for gold prices
The analyst states that the main trend is bearish according to the daily swing chart. However, since the formation of the closing price reversal on January 7, the momentum has been trending higher. The analyst draws attention to the following levels:
A trade up to $1,833 will turn the major trend up. A move towards $1,781.30 would eliminate the reversal of the closing price and signal the resumption of the uptrend.
Saying “The minor trend is down”, the analyst states that a trade up to $1,830.70 will turn the minor trend up and this will confirm the change in momentum and sets the following technical levels:
The short-term range is between $1,881.90 and $1,753. The market is currently testing the retracement zone at $1,817.50 to $1,832.70. This zone controls the short-term direction of the gold market. The 50% levels at $1,807.20 and $1,793 are potential support levels. Long-term support is the retracement zone between $1,781 and $1,757.10.
The direction of Thursday’s February Comex gold futures contract will be determined by the reaction of traders to $1,825.10, according to the analyst. The analyst describes two scenarios for gold prices:
bull scenario
A sustained move above $1,825.10 will indicate the presence of buyers. This could trigger a surge in a cluster of resistances at the $1,830,70, $1,832.70 and $1,833 levels. Taking $1,833 will not only turn the main trend up, but it could also trigger an upside momentum. The daily chart shows that there is plenty of room for upward movement above this level, with the main high on November 16 at $1,881.90, the next major target.
bear scenario
A sustained move below $1,825.10 will signal the presence of sellers. This could trigger more breakouts from the $1,817.50 low to 50% level. Buying $1,817.50 will show that the selling pressure is getting stronger with the next possible target at $1,807.20.
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