For the future of gold in the next week, FXStreetAnalystRoss J Burland writes a brief technical analysis and forecast. The main points of his views are as follows:
From a technical point of view, the gold bears still dominate, and the daily chart is out of a long empty to engulf the candle line.
At the same time, the Stochastic has remained bearish and faces significant downside. At the same time, the price of gold traded below 1303 (50% Fibonacci retracement) below the US dollar/ounce, and was limited to the 21st and 50th moving average crosses below the level of $1,298 per ounce. These are technical bearish signals.
If the price of gold falls below $1,285 per ounce, then it will be $1,280 per ounce, which will open the door for a further fall to $1,275 per ounce, which is the gold price from the August 2018 low to the February high. The 38.2% Fibonacci retracement of the gains.
If the price of gold continues to fall below the 200-day moving average of $1249.90 per ounce, it will continue to fall to the 50% Fibonacci retracement level of $1249.00 per ounce.
On the upside, the price of gold needs to break through $1,308 per ounce (61.8% Fibonacci retracement), which may attract new buying near the trend line resistance, thus chasing the February high of $1,346.60 per ounce and $1,350. / ounce level.
(Article source: FX168)