Gold market still under pressure and testing important supports

The downward trend continuesgoldwhich yesterday touched new relative minima at $1,938 an ounce.

Since the prices of the main safe-haven asset reached new all-time highs at the beginning of the month, the market has been subject to sales without being able to reverse course for now, also thanks to the strengthening of the US dollar in the last period.

In fact, it is known that a dollar appreciation discourages foreign investors from buying US dollar-denominated assets; this week alone the Dollar Index is up about 1%.

On this market we had written that in the event of a breakout of $1,975 we should have expected a test of $1,945, where we would find another important support; a subsequent break of the latter, with weekly closings below 1,940 points, would then have been understood as a further sign of medium-term weakness.

The market managed to hold on to this level yesterday by finishing trading slightly above $1,940; at the time of writing, the prices of gold futures are attempting a rebound, as could be expected, and settle in the area of ​​1,950 dollars an ounce.

The next resistive area to report is in the $1,965 area, it is probable that up to that level the market will not encounter too many difficulties.

However, the real test with a view to price recovery remains 1,985 dollars, whose breakout confirmed in the daily close could push gold back above 2,000 dollars an ounce.

In case we were to see sensational slides below $1,940, we expect a retest of $1,920 and then $1,900.

Written by:
Philip Giannini