Today I want to share an update on the hourly timeframe gold analysis with you. As you may know, due to geopolitical events in the Middle East and less-than-stellar economic data from the United States and globally, gold has managed to break its historical ceiling and experienced a good uptrend. Given that this metal has an upward trend, current events are contributing to its price increase.
Currently, we are in a corrective phase in gold. I have two scenarios in mind for gold and based on that, I am setting my trading strategy. In the first scenario, as evident on the chart, gold has formed the first leg of its downward correction and is trapped in a flag pattern. Although the flag has become very long, it is currently in its corrective phase around the Fibonacci 0.5 level. If the channel support is breached, I expect further decline towards the $2242 area until the second leg of correction is formed.
In my second strategy, considering that there is no potential for creating a new price floor within the defined channel and it is forming a new ceiling, and given the good reaction we had on the third contact with the channel floor, I expect a price reversal up to $2400. There are two resistance areas on the way up for the gold price, as shown in the chart. In any case, it seems that we are currently in a range-bound market.
Currently, we are in a corrective phase in gold. I have two scenarios in mind for gold and based on that, I am setting my trading strategy. In the first scenario, as evident on the chart, gold has formed the first leg of its downward correction and is trapped in a flag pattern. Although the flag has become very long, it is currently in its corrective phase around the Fibonacci 0.5 level. If the channel support is breached, I expect further decline towards the $2242 area until the second leg of correction is formed.
In my second strategy, considering that there is no potential for creating a new price floor within the defined channel and it is forming a new ceiling, and given the good reaction we had on the third contact with the channel floor, I expect a price reversal up to $2400. There are two resistance areas on the way up for the gold price, as shown in the chart. In any case, it seems that we are currently in a range-bound market.
