Gold Testing Double Bottom – Is it Good Time to Jump in?

Gold is holding right above the strong support level of $1,216. The same level supported gold on Oct 18, which makes it a double bottom...


The precious metal GOLD eased on Wednesday, sliding off a more than the three-month peak during the New York session, urged by a strong dollar. Especially after the US Conference Board reported a consumer confidence of 137.9 vs. the forecast of 136.3. The unexpected jump in the US household sentiment says a lot about economic growth, which, as a result, is being reflected in the demand for dollar.

Looking at the technical side, gold is holding right above the strong support level of $1,216. The same level supported gold on October 18, which makes it a double bottom level.

Gold – 4 -Hour Chart

Zooming in on the 4-hour chart, the immediate candle is half bearish and half bullish, demonstrating that the buyers are looming around $1,216. The trend is clearly bearish, however, the market can show us a slight retracement until $1,220 to $1,223 before it continues its bearish trend.

Support Resistance
1218.98 1227.96
1214.97 1232.93
1205.99 1241.91
Key Trading Level: 1223.95

GOLD – XAU/USD – Trade Idea

Considering the technical indicators, we opened a buying position above $1,216 to catch a quick retracement until $1,220 with a stop below $1,213. On the flip side, selling is preferred below $1,223.

Good luck!

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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