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.
2019-11-11 • Updated
On the daily chart of gold, there was a breakout of the important resistance at $1262 per ounce. As a result, the AB = CD pattern has been activated. Its 200% target is located near $1335. To reach this target, the bulls will need to push quotes out of the long-term downward trading channel and test the resistance at $1280.
On the hourly chart of gold, the ascending triangle pattern has been realized. The bulls might try to retest the upper border of the triangle located at $1262. In case of breakout, there will be a continuation of the rally.
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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