FxPro Financial Services Ltd | Feb 28, 2023 08:12AM ET
Gold continues to test the bottom and today fell back below $1810. Since the beginning of February, the dynamics suggest an almost perfect reversal of the uptrend, where the initial sharp pullback on the 2nd and 3rd was followed by a downtrend with nearly daily updates of intraday lows.
Although the $1800 level looks like a nice round level, there were no meaningful stops and reversals near it in December, increasing the chances that there will not be this time around.
A key indicator for the gold market is silver. The pullback towards $20.60 has brought the price back below the 200-day MA, which could put additional pressure on the market. A death cross has formed on the weekly timeframe as the 50-week moving average is below the 200-week moving average.
This technical picture suggests the possibility of a decline to $18.50. This is where silver could find support from buyers, as it did last August. It is also the former multi-year resistance that turned into support last year.
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The FxPro Analyst Team
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