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Gold Falls to $1300 Critical Support
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On August 28, Gold touched $1433 marked by the upper trend-line of an ascending channel visible on daily chart. Since then the yellow metal has witnessed
- On August 28, Gold touched $1433 marked by the upper trend-line of an ascending channel visible on daily chart.
- Since then the yellow metal has witnessed a steady decline towards the ascending channel lower trend-line support near $1360 level.
- On Thursday, Gold broke below the lower trend-line support and declined sharply to $1320, registering a loss of over 3%. In doing so the metal dropped below 100-day SMA support near $1340, also coinciding with 38.2% Fibonacci
- Retracement Level of over 21% up-swing from June low to high formed in August.
- On Friday, Gold extended its downfall, slipping to a one-month low of $1305 and is now headed for decline of over 5% for the week.
- This $1300 – $1305 area represents 50% Fibonacci Retracement Levels of the yellow metals strong run from $681 to $1921 and June to August up-move.
- Should the metal break below $1300 psychological level, it might continue with its recent weakness immediately towards $1275 – $1270 support zone, representing 61.8% retracement level.
- Moreover, a close below $1300 would mark its lowest weekly closing since Mid-July, probably suggesting further downfall in the near-future towards $1225 – $1230 support zone.
- Alternatively, should the metal manage to hold above the $1300 support area, it could possibly witness a minor recovery initially towards $1327 and further towards the 100-day SMA , $1340, also coinciding with 38.2% retracement level. The $1340 region now seems to cap any near-term up-move for the yellow metal.
- However, should the metal manage to move back above $1340 strong resistance zone, it could continue appreciating in the near-term towards its next important resistance near $1375 – $1380 zone.
- Original Article: Admiral Markets and hyper link Admiral Markets with http://www.admiralmarkets.com/
About the Author
Haresh Menghaniauthor
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