Gold bounces off two-week low, Fed rate hike bets to cap gains

November 22, 2021

Gold reversed an Asian session dip to near two-week lows and was last seen hovering near the top end of its daily trading range, just below the $1,850 level. The worsening COVID-19 situation in Europe turned out to be a key factor that benefitted traditional safe-haven assets.

The price of gold is stalling and bulls have run out of steam, leaving the yellow metal vulnerable to a deeper consolidation if prices fail to hold above the $1,840/oz region. There is a bias to the downside here until the 38.2% Fibo is reached that marks the prior highs that would be expected to act as support on initial tests.

The price is breaking below the prior daily lows and would be expected to continue lower until the prior resistance.

From a lower time frame perspective, the price is meeting short term support but the price action is strongly bearish and a continuation to the downside would be expected at this juncture.

Gold reversed an Asian session dip to near two-week lows and was last seen hovering near the top end of its daily trading range, just below the $1,850 level. The worsening COVID-19 situation in Europe turned out to be a key factor that benefitted traditional safe-haven assets. pic.twitter.com/FlP8ux0sqG

— 360ForexSignals.com (@petromenea) November 22, 2021