Gold traded significantly higher last week, due to several key events;
1) gross market uncertainty increased as banks collapse (SVB and Credit Suisse).
2) flight toward the reserve commodity
3) weakness in the DXY
Currently, the price is retracing and is trading along the 1973 price level, with further downside expected. The price is likely to test the support level of 1956 which sits between the 23.60% and 38.20% Fibonacci retracement levels.
However, as the uptrend of Gold remains strong, anticipate the retracement to be brief with the price likely to rebound from the support to trade higher again.
The next key resistance level is at the round number level of 2,000 which was last visited in April 2022
1) gross market uncertainty increased as banks collapse (SVB and Credit Suisse).
2) flight toward the reserve commodity
3) weakness in the DXY
Currently, the price is retracing and is trading along the 1973 price level, with further downside expected. The price is likely to test the support level of 1956 which sits between the 23.60% and 38.20% Fibonacci retracement levels.
However, as the uptrend of Gold remains strong, anticipate the retracement to be brief with the price likely to rebound from the support to trade higher again.
The next key resistance level is at the round number level of 2,000 which was last visited in April 2022
