March 08, 2023
Spot gold may revisit its Feb. 28 low of $1,804 per ounce, as yesterday drop reversed almost 76% of the gain from this level amid broad US Dollar strength. On Tuesday, Gold price broke through several support point after Fed Chair Jerome Powell’s hawkishness comment.
There may be two scenario at this point. One is the continuation of the downtrend from $1,859.60 below to $1,804 while other is the formation of a flat pattern in the range of $1,804 - $1,860.
The performance of the market around $1,804 would be a key factor for these presumptions. An easy break below $1,804 followed by continuation of downtrend would confirm the first scenario. While stabilization of the price around this level and bounce thereafter, would suggest the second scenario.
Preferably first scenario will prevail, as per yesterday's deep fall. Resistance is at $1,817, a break above could lead to a gain into $1,824-$1,831 range. The Next bearish target for the gold price will be towards 200 DMA at $1,775.
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