RLinda ! GOLD-> What happens to gold. Figuring it out

5 thg 10, 2022

Gold prices rose to the highest since mid-September amid a sharp decline in the dollar.
Quotes for December contracts on the New York Mercantile Exchange jumped 1.9% in trading on Tuesday. The DXY index is down 1.16%.
Gold started the fourth quarter of this year 2022 in a positive mood thanks to a weaker index and lower government bond yields
Rumors spreading through the market that the Fed is "shifting to a less aggressive approach to raising rates also supported demand for gold.


The rise in prices could last for a few more days, but further changes in gold prices will depend on the U.S. labor market statistics that will be published on Friday.


Gold is traded in a range between the 2750 and 1680 area, and look for mirror-like situations on the resistance side and predictability on the support side.
The price after capturing the liquidity forms a strong upward momentum, which reaches almost 900 pips from the low. But here we should pay attention to the fact that the price is heading towards the strong resistance line, from which we should expect a pullback and the transition of the price into consolidation.


Let's analyze the local situation. On the low timeframe we see the formed bearish price channel. The price after a false breakdown of support forms a distributive movement towards the resistance of the price channel.
The price breaks the strong trend line and will probably form a pullback with subsequent growth

Distributive movement greatly reduces the chances of a sharp breakthrough of the price channel resistance, so I expect a touch or false-break test of the zone, and after that a pullback to the strong trend line might follow

Regards R. Linda!