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Gold Tries To Rebound After Yesterday’s Sell-Off

By:
Vladimir Zernov
Published: Apr 26, 2022, 08:41 UTC

Gold received support near $1890 and rebounded towards $1900.

EUR/USD

In this article:

Key Insights

  • Gold found support near the $1890 level and is trying to gain upside momentum. 
  • Traders remain worried about potential rate hikes from the Fed. 
  • A move above $1900 will push gold towards the resistance at $1915.

Gold Attempts To Settle Above $1900

Gold is currently trying to get back above the $1900 level, while the U.S. dollar is testing yearly highs against a broad basket of currencies.

Investors remain worried about higher yields, and these worries have triggered a sell-off in the gold markets, which pushed gold from the $1935 level to the $1890 level.

However, gold continues to receive support in the $1890 – $1900 area and is trying to rebound despite stronger dollar. From a big picture point of view, gold declined from the $2000 level to the $1900 level in less than two weeks, which made it more attractive for speculative traders.

Not surprisingly, the strong sell-off in the VanEck Gold Miners ETF continued, and GDX made an attempt to settle below the $35 level before rebounding towards $35.65. If gold manages to settle back above the $1900 level, VanEck Gold Miners ETF should have a good chance to continue this rebound.

Technical Analysis

gold april 26 2022

Gold is testing the $1900 level. In case this test is successful, gold will move towards the next resistance at $1915.

A successful test of the resistance at $1915 will push gold towards the next resistance level, which is located near the 50 EMA at $1925. If gold gets above this resistance, it will head towards the next resistance at $1935.

On the support side, gold needs to settle below the $1900 level to have a chance to continue its pullback. RSI remains in the moderate territory, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

The next support level for gold is located at $1890. If gold declines below this level, it will head towards the support level at $1880. A successful test of this level will open the way to the test of the support at $1865.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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