Gold Holds Below $2075 Resistance

07 September 2020

Gold is holding below its potential top and resistance around $2075 levels since last several trading sessions. The yellow metal has been drifting sideways in a potential contracting triangle and could drift either direction. A break below $1862 would confirm a meaningful top in place.

Gold potential wave counts are as follows: Gold might be carving an expanded flat corrective wave at a larger degree since $1920 highs in 2011. Prices tend to go beyond extremes in case of an expanded flat and Gold has also rallied past $1920 n the recent weeks.

The earlier drop between $1920 and $1046 could be marked as a larger degree Wave (A) within the proposed expanded flat correction. The subsequent rally towards $2075 might have unfolded as Wave (B) within the expanded flat.

If the above structure is correct, Gold might be preparing to reverse lower towards $1046 as Wave (C) unfolds in the next several weeks. A break below $1862 interim lows would confirm that trend has reversed lower and bears are in control.

Alternately, if Gold is consolidating within a triangle preceding the last rally, it could break higher above $2075 resistance before carving a top and reversing sharply lower again. Probabilities for another push through $2075 remains less for now.

Traders might be preparing to hold on the short positions initiated earlier and also look to sell on rallies towards $1950/2000, going forward. Protective stops remain above $2075 and potential targets point below $1450 respectively.

Prepared by
Technical Analysis Team

Disclaimer: This information has been produced by a third party, for general information purposes only, and is not indicative of future results. Abans Global takes no responsibility for its accuracy or completeness. Any opinions expressed do not reflect those of Abans Global. This information does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should seek independent advice before making investment decisions. Reproduction of this information, in whole or in part, is not permitted. Please note: If you are a Professional client, you are not eligible for negative balance protection and you could lose more than your initial deposit.

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