Gold prices have experienced four consecutive weeks of decline, with a 3.6% drop in the current month, marking the worst performance since February. Despite this decline, retail traders are showing increased bullish sentiment toward gold. This suggests that some investors see the lower prices as an attractive buying opportunity.
Gold failed to find happiness in the north
2019-11-11 • Updated
On the daily chart of gold, the bulls failed to hold the quotes above the important level of $1280. As a result, there is a risk of the correction towards the convergence zone $1250-1256 and then towards the intersection of the lower border of the upwards trading channel and upper border of the long-term downward trading channel.
On the hourly chart of gold, the Bump and Run-Reversal pattern has been realized. A break of the diagonal support of the initial stage followed by the rollback of the quotes towards $1270 may result in the restoration of the downtrend.
Recommendation: SELL $1270 SL $1285 TP $1240.
Gold prices dipped as investors took profits following a near one-month high, but still recorded their biggest weekly gain since April on expectations of a pause in U.S. interest rate hikes. Spot gold was down 0.3% at $1,954.69 per ounce, while U.S. gold futures eased 0.2% to $1,959.30. The dollar index edged up 0.2% but remained close to its lowest level since April 2022.
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