CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open Account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open Account
✖

Gold Price Forecast: Gold Prices Grind into a Range

Article By: ,  Sr. Strategist
Friday 6:29 PM

Gold Talking Points:

  • Gold prices have been quiet and range-bound for going on two weeks now.
  • While volatility has been low, there has been adherence to previously-defined support and resistance. Support at 2617-2621 has held multiple inflections, as has resistance in the 2643-2650 zone.

For gold traders that had gotten accustomed to ripping volatility and strong trends for the past ten months, the past two weeks of range-bound grind likely comes as a change-of-pace. November itself was a change-of-pace, as gold broke a nine-month streak of gains with its first red bar on the monthly chart since January.

Putting that recent volatility into context: The post-election move in gold was aggressively bearish, and that led into a pullback in mid-November as the metal showed its strongest weekly gain in over a year. And then two weeks ago opened with a strong sell-off but the support that came into play from that, at 2617-2621, has remained in-play for the past two weeks with multiple inflections.

 

Gold Four-Hour Price Chart

Chart prepared by James Stanley; data derived from Tradingview

 

Gold Levels

 

Given the consistency of the range over the past two weeks, it would be difficult to derive any directional biases. But there are still a plethora of levels on either side that remain of interest, and if those come into play, and when, could be telling as to how traders may look to impart strategy on the matter.

Below the 2617-2621 support zone, the 2600 level is key and the 38.2% retracement of the June-October move plots nearby at 2597. If sellers can breach through that, then the next major area on the chart would be the 50% retracement of that same major move which caught the post-election low at 2538.

Sitting overhead, the 2643-2650 resistance zone has been the most active with multiple tests over the past week, but another zone sits just above that from 2660-2666, and that’s what caught the highs last week. Above that zone, there’s a few different items of note such as a Fibonacci level at 2667, a psychological level at 2675 and then a prior price swing at 2685.

For key resistance, I’m tracking that in a zone that’s $100 above current range support, at 2717-2721. That was the spot that held the highs from the late-November bounce and there’s two prior price swings demarcating each side of that zone. If buyers can push through that, I would consider that a strong exhibit of control and something that could open the door to longer-term bullish continuation scenarios.

 

Gold Daily Price Chart

Chart prepared by James Stanley; data derived from Tradingview

 

--- written by James Stanley, Senior Strategist

 

Gold Talking Points:

  • Gold prices have been quiet and range-bound for going on two weeks now.
  • While volatility has been low, there has been adherence to previously-defined support and resistance. Support at 2617-2621 has held multiple inflections, as has resistance in the 2643-2650 zone.

 

Gold AD

 

For gold traders that had gotten accustomed to ripping volatility and strong trends for the past ten months, the past two weeks of range-bound grind likely comes as a change-of-pace. November itself was a change-of-pace, as gold broke a nine-month streak of gains with its first red bar on the monthly chart since January.

Putting that recent volatility into context: The post-election move in gold was aggressively bearish, and that led into a pullback in mid-November as the metal showed its strongest weekly gain in over a year. And then two weeks ago opened with a strong sell-off but the support that came into play from that, at 2617-2621, has remained in-play for the past two weeks with multiple inflections.

 

Gold Four-Hour Price Chart

Chart prepared by James Stanley; data derived from Tradingview

 

Gold Levels

 

Given the consistency of the range over the past two weeks, it would be difficult to derive any directional biases. But there are still a plethora of levels on either side that remain of interest, and if those come into play, and when, could be telling as to how traders may look to impart strategy on the matter.

Below the 2617-2621 support zone, the 2600 level is key and the 38.2% retracement of the June-October move plots nearby at 2597. If sellers can breach through that, then the next major area on the chart would be the 50% retracement of that same major move which caught the post-election low at 2538.

Sitting overhead, the 2643-2650 resistance zone has been the most active with multiple tests over the past week, but another zone sits just above that from 2660-2666, and that’s what caught the highs last week. Above that zone, there’s a few different items of note such as a Fibonacci level at 2667, a psychological level at 2675 and then a prior price swing at 2685.

For key resistance, I’m tracking that in a zone that’s $100 above current range support, at 2717-2721. That was the spot that held the highs from the late-November bounce and there’s two prior price swings demarcating each side of that zone. If buyers can push through that, I would consider that a strong exhibit of control and something that could open the door to longer-term bullish continuation scenarios.

 

Gold Daily Price Chart

Chart prepared by James Stanley; data derived from Tradingview

 

--- written by James Stanley, Senior Strategist

StoneX Financial Ltd (trading as "FOREX.com") is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, FOREX.com does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date.


This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it. No opinion given in this material constitutes a recommendation by FOREX.com or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.


The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although FOREX.com is not specifically prevented from dealing before providing this material, FOREX.com does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. For further details see our full non-independent research disclaimer and quarterly summary.


CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

FOREX.com is a trading name of StoneX Financial Ltd. StoneX Financial Ltd is a company incorporated in England and Wales with UK Companies House number 05616586 and with its registered office at 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is authorised and regulated by the Financial Conduct Authority in the UK, with FCA Register Number: 446717.

FOREX.com is a trademark of StoneX Financial Ltd. This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy. FOREX.com products and services are not intended for Belgium residents.

© FOREX.COM 2024