GOLD → False breakout and negative fundamental background

13 de dez.

XAUUSD is correcting after a false breakout of resistance. This is also supported by negative fundamentals. Will there be a pullback or will the decline continue?



Optimism over China's economic stimulus is waning amid growing fears of a trade war between the US and China. Expectations of a hawkish Fed interest rate next week helped boost the US dollar, leading to a corrective decline in the gold price.Markets now believe the Fed may send a hawkish signal by signaling a pause in January after PPI came in higher than expected
Technically gold is still inside the channel, consolidation continues. Focus on 2658-2660 support, below which there is a huge pool of liquidity that may not let the price down on the first try

Resistance levels: 2675, 2682, 2699
Support levels: 2658, 2636

From the support 2658 may form a correction from which will depend on the further development of events: if the correction will be small and the price will quickly return to 2658, it will increase the chances of support breakout and further fall, for example, to 2636. But, if gold can consolidate above 2682 and consolidate above the local high, the price may head for a retest of the high

Regards R. Linda!