Article by: ETO Markets
The price of gold has dropped more than 5% since it reached its all-time high earlier this month due to the most recent leg down. However, given the rumours that the main central banks will be lowering interest rates this year, any further decrease appears restricted. In front of this week's important US macro announcements, which begin with the flash PMIs, traders may also choose to avoid making large wagers and instead stay out of the market.
Gold price might then slide to $… , or the 38.2% Fibonacci level, before dropping to the $… intermediate support en route to the $… confluence, comprising the 50% Fibonacci level and the 50-DMA.
On the flip side, any attempted recovery might now confront immediate resistance near the $… region. A sustained move beyond, however, should allow the gold price to accelerate the momentum towards the $…-… intermediate hurdle en route to the $… supply zone, where SMA-20 and SMA-50 merge on the four-hour chart.
