Gold drops to key support
The price of gold fell today to its lowest level since early August, hitting a low so far of $1448ish.
Share this:
The price of gold fell today to its lowest level since early August, hitting a low so far of $1448ish. The metal has therefore reached the technically-important $1450 level that we have been banging on about for the past few weeks, for example HERE. Fundamentally, I think gold prices could be headed higher in the long-term for the reasons I have given in the previous article. Technically, there is still the possibility for further weakness as my colleague Matt Simpson highlighted the possibility earlier in the day. However, if gold were to climb back above the previous month’s low and close there, around $1460, this would create a potential false breakdown reversal pattern. I think there is a decent chance of this happening since the bears have hit their main downside objective at $1450. If this turns out to be the case, then we could see some gains in the days ahead, at least towards the next potential resistance at $1480/2 area. BUT we have to see that reversal candle first – such as those plotted in the inset. A closing break (well) above $1460 would help create such a bullish-looking hammer candle on the daily chart.
Source: Trading View and City Index.
The price of gold fell today to its lowest level since early August, hitting a low so far of $1448ish. The metal has therefore reached the technically-important $1450 level that we have been banging on about for the past few weeks, for example HERE. Fundamentally, I think gold prices could be headed higher in the long-term for the reasons I have given in the previous article. Technically, there is still the possibility for further weakness as my colleague Matt Simpson highlighted the possibility earlier in the day. However, if gold were to climb back above the previous month’s low and close there, around $1460, this would create a potential false breakdown reversal pattern. I think there is a decent chance of this happening since the bears have hit their main downside objective at $1450. If this turns out to be the case, then we could see some gains in the days ahead, at least towards the next potential resistance at $1480/2 area. BUT we have to see that reversal candle first – such as those plotted in the inset. A closing break (well) above $1460 would help create such a bullish-looking hammer candle on the daily chart.
Source: Trading View and FOREX.com.
Related tags:
Latest market news
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Gold Q4 2026 outlook: Resilience in the face of rallying dollar and yields
As we headed towards the latter stages of Q3 and into Q4, the Fed had just hiked rates in a hawkish FOMC meeting, while the likes of the ECB and BoJ had also tightened their respective policies. Oil prices remained elevated amid the prolonged US-Iran conflict. Meanwhile, bond yields were breaking out, and the dollar was higher across the board. Yet, remarkably, gold was still holding in the positive territory for the third quarter, even if it had weakened somewhat in September.
Gold forecast: XAU/USD could take a larger dive after the big rise in yields
Gold prices have been falling in the last few days after last week’s post-FOMC pop faded amid rising interest rate expectations, higher oil prices and a strengthening US dollar. As before, I wasn’t convinced gold would thrive in the current macro backdrop.
Gold, silver slammed as hawkish Fed repricing reignites dollar upside
Gold and silver had held up surprisingly well against surging US yields. Wednesday’s DXY breakout may have changed that equation.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.