[Where Did You Gold?] Gold Rebounded Slightly But Obstructed by the Dollar's Rise

Kuala Lumpur 5:00 p.m. (GMT+8) - In the European market on Thursday (October 22), spot gold prices has been slightly retraced to the level of $1,915 per ounce and even hit the resistance level of $1920 per ounce. The precious metal is currently trading at around $1918, and the market is still paying attention to the negotiation of the Stimulus.

Regarding the daily gold price trend, FXStreet's analyst Dhwani Mehta wrote a brief analysis as follows:

Illustration photo of Gold D1 chart from 24K99.com

The price of gold rose about 1% yesterday, even touch a one-week high of $1,932 per ounce, then fell slightly and finally closed at around $1,925 per ounce.

The dollar continued its overnight rally, which put pressure on gold come down. However, any positive developments in stimulus policies and the optimism of the U.S. unemployment claim data may boost investors' preference for lower-risk assets, which may put pressure on the dollar and provide support for gold prices.

From the technical chart, the bullish momentum face a strong resistance which is also the 50-day moving average at $1,924 per ounce after the break of falling wedge on the daily chart on Wednesday.

Gold price is ranging between $1,917 to $1,920 per ounce at the time being. With the gold price broke through the resistance level of $1,924 per ounce, we believe that it will continue on a bullish momentum. The next target is set at $1,933.30 and $1,950 per ounce.

On the other hand, Dhwani Mehta stated that if the gold price still possible to drop, the key resistance will be 21-day moving average at $1,898. If break through this level will change the gold to a bearish trend with the target at 100-day moving average $1,879 per ounce

It also predicted that the levels of $1898.00 per ounce and $1933.30 per ounce will constitute the short-term support and resistance to the gold prices, respectively.

Rationale: The Relative Strength Index (RSI) indicator turning downward but still above 50. It hinted gold has the potential to gains.

Translated and processed from the main article: https://www.24k99.com/2010/432...