Gold is in a descending wedge
The gold market looks like it is developing a descending wedge near term which could spend the next weeks developing below the 1950 level. This would be a compliment to the bullish breakout we are seeing in the US Dollar index near term. Last week the Gold market respected the 61.8% Fibonacci level at 1948, and despite the slight break of the 1950 level, the failure allows for a risk for near term lower prices. A drop back below the 200dma at 1915 may expose a move back towards the 1885 level. However, since this is a descending wedge, ultimately the setup may allow for a bullish bounce to develop below the 1900 level in the weeks ahead.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.