Gold prices fell again early Friday as some technical selling from this week’s slump continued and a strong US dollar index hit 1.5-year highs overnight. Market commentary and technical analysis from senior analyst Jim Wyckoff cryptocoin.com compiled for our readers.
“Golden bulls have lost their overall short-term technical advantage”
However, according to Jim Wyckoff, there are two elements currently working in favor of the safe-haven metals bulls: Gold markets are oversold on a short-term technical basis and reasonable corrective bounces are expected soon. Also, risk aversion increased markedly in US markets just ahead of intraday trading. Based on these, the analyst states that gold prices have raised the bar this week.
Global stock markets plunged overnight. US stock indexes point to weaker openings as the New York daily session begins. It’s been a shaky week for global stock markets. Risk aversion slumped slightly as we entered the weekend. Russia-Ukraine tension may be easing a bit. Meanwhile, the analyst states that the market has largely digested this week’s hawkish FOMC meeting.
Gold is down almost $70 from its two-month high at the start of the week. Technically, the February futures gold bulls have lost their overall short-term technical advantage and the five-week price rally has been rejected on the daily bar chart. The analyst points out the following technical levels:
The bulls’ next upside price target is to close February futures contracts above the solid resistance at $1,825. The bears’ next short-term bearish price target is to push futures prices below solid technical support at $1,753 in December. Initial resistance is seen at today’s high at $1,798.40 followed by $1,800. Initial support is seen at nightly lows at $1,778.80 followed by $1,775.
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