Gold Prices Hit a Level Not Seen Since 2010

Gold (1144.86)

The yellow metal has been falling through supports ever since a bearish evening star candlestick appeared below the resistance at 1255.10. This is a technical level supported by the 55 day moving average and a long term trend line. Let’s look at the daily MT 4 chart below.

Sellers are looking at 1154.85, with a daily close below this level opening the doors for a challenge of 1131.10. Should the yellow metal reverse course, unlikely with the absence of bullish reversal signals, then we would need a daily close above 1178.85. This is the end of a congestion area that starts near 1174.00. Should this happen we would then target 1193.20.

Let’s look at the below 4 hour chart. The quick day trading chart paints the same bearish picture. With the emergence of another bearish engulfing candlestick, it would seem that the sellers are in control of gold for now.