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Gold Price Action – Trading near Important Support zone

Since Jan, there’s not much change in Gold Prices. Market structure is still in Range. Prices are trading within the borders of structural support and resistance zone. Structural Support zone is at 1310 – 1305 whereas Structural resistance is at 1360 – 1357. A combination of Dollar strength and selling pressure is influencing Gold’s Price action. Here’s the recent Price Action analysis on Daily chart.

Gold Intermediate Price Action Analysis in Daily chart

Gold Price action in Range and testing the Support zone

Looking at the recent Price Action, we can observe that short term sentiment is bearish. Market participants are selling since Mid-April. Price declined from April 16, resulting in Gold Prices losing almost 50$ per ounce value, as per international Spot prices. In just nine trading days, Gold prices tumbled from 1360 to 1310. The structure looks like a downtrend on lower time frame on 15 Min and 1 hr. Charts. Strong Dollar and bearish sentiment are the pre-dominant factors which pushed gold prices towards the structural support zone 1310 – 1305.

As we can see, Right now Prices are trading near structural support zone. Price action has tested and retested this support zone multiple times in the past. Bulls were able to absorb the selling pressure and defended the support zone successfully over previous attempts. Can bulls replicate the same behaviour this time? Traders should monitor the Price action in coming days for answer. Whatever happens at this support zone determines the future direction of Gold Prices.

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About the Author:

Balaji is a Speculator, Investor and Trader (All in All!!!) and self published author. Trading in the Markets since decade, have seen more ups and downs along with institutional trader's lifestyle. He usually trades Nifty, Bank Nifty, Commodities, Futures cum Options around both Indian and global Markets. Balaji applies highly analytical and systematic Price Action strategies He blogs passionately about Trading strategies, Price Action Trading, Technical analysis, Macro events, Market setups, Financial and Economical topics. Apart from Trading and Blogging, Balaji also mentors aspiring Traders and Investors on becoming successful in highly competitive financial Markets.

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