As we inch closer to end of the year, (Of course still couple of weeks left) Gold (Also silver) hasn’t moved much compared to base metals such as copper, aluminum and zinc etc.In beginning of the year, we saw sharp upswings from 27000 to 29400, apart from that gold hasn’t given any outshining performance!
Gold Price action Analysis on Weekly Chart
Market movements are struck within the range of 27000 – 30200; High and low of the boundaries also act as potential support – resistance levels. Keep in mind, we are considering higher time frame (weekly chart) so when ever trends formed in lower time frame, it took place inside the higher time frame range and most of those trends were short-term trends – We refer this phenomena as Market fractals (Read more about the dynamics of Market fractals)
Even though market action was struck in a range, the prices didn’t move down much. Also the upswings were quite sharper and faster than the downswings which show that buying pressure was dominant in the range. So its worth to question, Are there any institutional accumulation taking place in gold? We need to wait and watch the price action for answers.
Now prices are trading near the potential resistance zone at 30000, the surprising fact is we can’t witness any selling pressure. (When you look at the candles marked in yellow circle it becomes clear) Will the bears push the prices downside? Or any possibilities that bulls might absorb the selling pressure leading to breakout? Due to this dilemma, Gold is causing a big frustration for speculators and investors. Anyway Price action traders must keep an eye on Market structure for potential trading setups.
