Gold prices in the international market fell more than 1 percent on Monday to the lowest level since the end of January. Spot gold fell to $1,794 and U.S. gold futures were down 0.6 percent. So, what are the charts showing this week? Here are analyst Ross J. Burland’s comments in detail…
Gold prospects are bearish
Gold is creeping towards the weekly target, but the bulls are starting to move. The expert also points out that if the bears fail to commit under $1,820, there could be a period of consolidation on the cards. Currently, the gold price has dropped to the weekly support last week, as predicted by Burland’s pre-market analysis.
Price closed below a critical structure around $1,820 last week, so focus is considered to be more downside for next week. However, there is a possibility of a correction to retest old support before dipping below $1,780 and below. The price on the four-hour timeframe is problematic, according to the analyst. Burland uses the following statements:
The bears will hope for a correction commitment to the previous day’s close around 1,820, but the doji shows the bulls moving. The next move above 1,830 will likely lead to a period of consolidation above current lows over the next week.
What are TD Securities analysts saying?
Meanwhile, as we reported on Kriptokoin.com , analysts of TD Securities announced that gold specifications have drastically reduced length, cut long positions and added shorts to the highly anticipated US CPI pressure. TD Securities’ statement is as follows:
As a matter of fact, inflation data came in above expectations. Despite a short-term rise, the yellow metal has since fallen victim to higher nominal and real rates along with less liquidity due to monetary expansion. With precious metals sentiment weak and prices currently below the uptrend that defines a bull market, a major liquidation event could be happening right now.
