Gold consolidates within attempted recovery

Gold (daily chart) has stalled within a tight flag-like consolidation after rising modestly in the past three weeks from depths as low as 1180 in […]


Blue avatar for FOREX.com guest contributors
By :  ,  Financial Analyst

Gold (daily chart) has stalled within a tight flag-like consolidation after rising modestly in the past three weeks from depths as low as 1180 in late June. That trough represented almost a three-year low for the precious metal, closely approaching a support level of around 1160 that was last hit in mid-2010. The attempted recovery of the past three weeks has thus far brought the price back up to around the 50% Fibonacci Retracement of the plunge from around the important 1425 resistance level down to the noted 1180 long-term low. In the process, the price has recovered above the key 1265 support/resistance level.

Having just formed a small flag consolidation pattern, gold would need to breakout significantly above the high of this pattern around the 1300 level if it is to confirm a continuation of the current upside correction and recovery. In this event, a key intermediate price objective to the upside resides around the noted 1425 level. Any strong breakdown below current support around the 1265 level could likely invalidate or delay the recovery.

Related tags:

Open an account today

Experience award-winning platforms with fast and secure execution.

Web Trader platform

Our sophisticated web-based platform is packed with features.
Economic Calendar