Gold: Bears Could Step In Above $1872
Satendra Singh | Nov 16, 2021 09:04AM ET
Gold faces tough resistance at $1877 after a rally from $1864. The yellow metal is facing selling pressure above $1872, which is also the initial support. A sustainable move below $1864 will make sure the selling spree continues up to this week's closing.
Meanwhile, the US dollar has strengthened today. A strong dollar could make gold bugs nervous. On the other hand, growing uncertainty after the European Central Bank's meeting could continue to affect gold.
Rising inflation could support gold bulls, but the sudden surge in gold prices from the lower levels will attract bears in the next four weeks.
If gold moves above $1877, it could be a bull trap. Gold prices could break down below $1858 before this weekly closing confirming a steep slide that could push the prices towards $1676 before Dec. 15.
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