- Summary:
- Gold price looks weak here as it struggles to remain in a rising channel. Bears eye a move lower with the possibility of a head and shoulders in sight.
Yesterday’s news that the Democrats are on their way to winning control of the U.S. Senate caused a dip in the gold price. The market starts pricing in the possibility that the “blue wave” means tighter regulations for the tech sector as well as corporate tax hikes. All in all, a stronger dollar that goes against the general consensus present in the markets so far.
The sharp drop in the gold price came in the context of Bitcoin, making a new record high. While gold collapsed on an intraday basis, Bitcoin surged well above the $35k, as more and more investors turn to the digital alternative investment to the gold’s detriment.
Gold Price Technical Analysis
Gold looks weak here. While it still holds in the upward channel, bulls will continue to bid for it. Aggressive bears may want to sell at market with the focus on the key area highlighted below. This is the area where gold consolidated on the left side of the chart, and by reaching it the chances are that a head and shoulders pattern forms.
Conservative bears may want to wait for the price to break below the lower edge of the rising channel before shorting with a stop at the highs and targeting a new low beyond the bottom seen in December.
Gold Price Forecast
