Gold price took a hit yesterday and dropped $15 per ounce. Unless a major recovery occurs today, gold may experience the largest monthly drop since November 2016. Drop in prices yesterday was accompanied by strengthening of the US dollar. Taking a look at GOLD at monthly time frame, we can see that a bearish engulfing pattern surfaced on the chart. In theory, this is a bearish signal but will not be confirmed until the current monthly candlestick closes.
Taking a look at GOLD at lower, daily time frame, we can see that the price pulled back and is testing the support zone in the $1,760 area. Breaking below this hurdle would pave the way for a test of the next major support in the $1,690 area.
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Open account Try demo Download mobile app Download mobile appToday's ADP employment report release may have an impact on USD and therefore on gold as well. Traders should stay on guard near 1:15 pm BST.
GOLD painted a bearish engulfing pattern at monthly time frame. Source: xStation5
GOLD at daily time frame. Source: xStation5
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