The following message was updated on 2/4/2023 1:35:14 PM.
Gold Chart Outlook 2/4/2023
GOLD generated a “key” reversal week, having made a new 9-month intraweek high at $1975 and dropping almost 5% in value to $1874, and then closing convincingly below the previous week’s low. The key reversal is a clear sign that the recovery rally has now reached a top and that some regressing and establishing a trading range is to occur. The pivot point for the short term is $1875 (on a weekly closing basis), given that is the level of resistance that when broken to the upside, took Gold to the rally high. Any weekly close below $1875 will open the door for potentially a drop all the way down to the $1784 level, which is where decent-and-unlikely-to-be-broken-without-some-major-fundamental-change "weekly close" support is found. Gold did close on the low of the week, suggesting further downside below last week’s low at $1875 will be seen this week. It does bear saying that there is no established intraweek support below until the $1790 is reached, suggesting that further downside of consequence could be seen this week before some new buying (or should I say, trading) is found. Nonetheless, last week’s close is short-term pivotal (on a weekly closing basis), meaning that if by any chance Gold does get down to $1790 this week, some bargain basement buying will likely come in. Overall though, the chart strongly suggests that on a “daily closing basis”, Gold will trade between $1750 and $1905 for the next 3-6 months.