Skip to main content

Market Overview

Gold Price Forecast: Breaking Bad, Could Test 200-day MA Support


This article originally appeared on FXStreet.

Gold violated the higher highs and higher lows pattern on Monday, opening doors for a deeper pullback to the 200-day moving average (MA) support, located at $1,308.

Daily chart


  • The downside break of the rising channel adds credence to the repeated full pattern failure and has put the bears back into the driver's seat.
  • The 5-day MA, 10-day MA are trending south, indicating a bearish setup. Further, the 50-day MA is set to cross the 100-day MA in a gold-negative manner.
  • The relative strength index (RSI) is biased bearish (below 50.00) and the MACD has shed the bullish bias.

The negative setup on the daily chart adds credence to the bearish inside-week candle seen on the chart below

Weekly chart


The high-low of last week's bearish inverted hammer last week was within the price range of the preceding week. So, the metal created a bearish inverted inside-week candle last week, which suggests a change in the direction, i.e. the rally from the December low of $1,236.50 has ended and the bears have regained control.


The yellow metal could test the 200-day MA support of $1,308 in the next couple of days.

A daily close above $1,340 would abort the bearish view.


Related Articles

View Comments and Join the Discussion!

Posted-In: FXStreetNews Commodities Markets

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at