Golden call points:
- Gold prices has erupted again this morning, this time testing over 1,800 psychological levels.
- Today’s move marks an increase of more than 7.5% from a two-week low when Gold fell to a year-low of 1680.
- Tthe analysis in the article is based on this pricing and chart formations. For more information on pricing or chart patterns, visit us DailyFX education section.
Gold prices have continued to rise over the past week, leaving the flash scenario two weeks ago even further in the rear view. At the moment, gold prices have risen more than 7.5% from the lowest level of the August 9 flashth, posted at a key point in the chart, to about the same low in 2021 that hit a double bottom in March.
Last week began with gold prices digging resistance in the Great Zone between 1789 and 1797. And while the zone helped keep many highs last week, it started with a bang as gold prices fell above the zone and ran straight to the next resistance that was drawn between 1804 and 1808. This current field of resistance was a batch of low batches of trade in early August, which has now been transformed into resistance.
Golden four-hour price chart
The withdrawal of some perspectives and trends remains rather opaque. Although the recent jump in the price of gold offers rising potential with short-term prospects, the longer-term background is not convincing. However, this puts an emphasis on the level of 1834, as it is a potential double formation, and if it is removed high, the door will open to run in the 1855 zone.
Golden daily price chart
Given the economic calendar for the week that Jackson Hole was on USD-related publications and there may be a significant motive for the gold price action this week. Although the strength has been at full screen, the burst potential remains in the current resistance zone, which ranges from about 1804 to 1808, and the second zone is around 1824 to 1834. If the bulls are able to withstand this resistance, the zone above the head will run from 1855 to 1860.
The current pricing includes a support zone dating back to 1769-1775; this is the area that helped keep last week’s lows. Below this is a secondary support zone, which runs from 1755 to 1760, and below it is a third zone of interest from 1825 to 1834. The annual low of 1680 continues to stand out, so if the bears move excessively, this 1680 level will lurk below the key marker, which is below the 2021 trade gold level.
Eight-hour gold price chart
– Written James Stanley, Senior strategist For DailyFX.com
Get in touch and follow James Twitter: @JStanleyFX