Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Gold: trade the lower drift
Information is not investment advice
Cannot fight the feeling that the gold price wants to go sideways – again. The core of the channel would be between 1 840 and 1 860, with the outer borders being at 1 825 and 1 875. If that’s the case, gold will go to 1 840 first, possibly going through some fluctuation above that support, touch the low of 1 825 and revert to the upside.
Here are the possible scenarios then.
In this scenario, the gold price dips into the support channel 1 840 – 1 845 and then gets back up to 1 860 to conquer new local highs.
In bears and bulls are relatively even, the price will keep going sideways across the channel 1 840 – 1 845 for quite a while before moving to another baseline level.
This scenario assumes the gold price will drop to 1 825 and stay there in the nearest short-term.
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD.
The US dollar index has all chances of reaching the 2000s high of 120.00.
Many investors treated gold as a protection against inflation. However, last week, gold lost its major support and dropped despite rising inflation. Why did it act like this?