Gold is retesting the lows of the long-term structure

Updated:

Key support: 1785 – 1780
Key resistance: 1795-1814

Gold long-term bullish
Since the pandemic hit Gold has rallied 42.88% from low to high of the move and has retraced -15.40% from the highs to a massive key level.
Buys are still in play as Central Banks keep their asset purchasing programs at all time highs and investors seek shelter from a falling US Dollar to control the drawdown of their cash in hand. Gold is the answer.

As a safe heaven this insane growth of the Fed´s balance sheet has inflated the price of precious metals. This is the opportunity with more than 40% of all US Dollars in circulation been printed in the last year. (see M1 money stock chart below)

1H Chart reading

Gold was capped to the upside by the weekly pivot around the 1825 level. This brought sellers in earlier this week for a -2.30% move. Price is now retesting the previous lows and the make-it-or-break-it bullish level inside of a reversal pattern right at the 161.8% of the first leg down. In order for longs to be in play today´s highs need to break which would also break the falling pennant. Should price break 1780 this idea is no longer valid
Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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