Gold Price Action Update – August 27, 2020

Short term, gold is in an early downtrend,

trend is not strong,

thus we rely on whether immediate support levels will hold,

if they don’t and they are broken, then we look at velocity of the move to determine if this embryonic down trend has strength (and perhaps more longevity)

In this interim or this current short term view,

My email to clients on Monday August 24th, suggested support levels for USD Gold where $1,907 – $1,882,

Yesterday Gold traded to $1,902 on that support line and has bounced $40,

see two charts below (one is the “bigger timeframe, the other is a close up on yesterdays low kissing the support line)

I expect Gold to test that support line again in the next day or so and watch if it holds before making the next call.

August 27, 2020

by Rob Zdravevski

rob@karriasset.com.au