Commodity Check : GOLD

JC Parets
May 17, 2022

Gold as a commodity is close to the heart coming from India. It is generally the first instrument of investment. Most often it's also the first gift for a newborn baby. We also have important days such as Akshaya Tritya and Diwali when retailers consider buying gold auspicious.

The inherent faith in the yellow metal to save us from bad days has been a part of the psyche for a long time. With that in mind, the levels to track in Gold become important from a personal and professional standpoint.

Gold has been battling several levels of resistance for a while now. The last time that Gold was making waves in the market was in August 2020 when the price traded close to 56,200. Since then, the price has been on a sideways journey.

In the week gone by, the price slipped below the support of 50,670.

So what are the levels we're tracking now after this move? Let's take a look!

Click on the image to zoom in.

The price had been making good ground when in March this year it was making a dash towards the highs near 56,200. For a moment there it felt as though Gold was finally joining the Commodity move. But that feeling didn't last long, as you can tell from the price movement post that.

Anyway, we're currently looking at a breakdown below 50,670. If the price continues to display weakness the next level to track would be 47,525. The momentum has eased since its brief moment in bullish territory. Precious metals haven't been up to much if you're a bull. If you're a bear, that's been a different story. For a range-bound trader though, this has been the best setup.

Depending on your trading system, you either have something to do with these levels or don't. But we're definitely keeping an eye on the precious metals to see if they catch a bid or if they fall through the ground.

What's your trade in Gold? How are you playing this range?

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team

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