On the H4 timeframe, Gold’s recent rally came to test the 1789.00 resistance level on 16 November, which led to a reversal in price to the downside. Price then came to test the 1729.00 support level twice. We forecast that the bearish trend will extend below the support turned downside confirmation to the next support level at 1675.00.
- Stochastic RSI is approaching the oversold region, while PPO (red line) is crossing the signal (blue line) from above. The technical indicators support our case and show a downside momentum in price.
- When looking at a higher time frame, prices are consistently below the Moving Average while a declining trendline confirms the overall downside trend for Gold prices on the weekly time frame. Stochastic RSI had also clearly crossed over into the overbought region.
- Meanwhile, we expect a trend reversal to the upside for the DXY. Dollar and Gold prices experience an inverse relationship, and the forecasted rise in the Dollar will contribute bearish pressure to Gold.
- Stochastic RSI is approaching the oversold region, while PPO (red line) is crossing the signal (blue line) from above. The technical indicators support our case and show a downside momentum in price.
- When looking at a higher time frame, prices are consistently below the Moving Average while a declining trendline confirms the overall downside trend for Gold prices on the weekly time frame. Stochastic RSI had also clearly crossed over into the overbought region.
- Meanwhile, we expect a trend reversal to the upside for the DXY. Dollar and Gold prices experience an inverse relationship, and the forecasted rise in the Dollar will contribute bearish pressure to Gold.