Gold : Downside break out of range 1670-1730 is likely

11 May 2020

Spot gold is trading inside the rectangular range 1670-1730 since 5 weeks as the risk appetite escalates and investors were forced to lessen their long positions . Technically, 1670 area is the short term range bottom/the final fib support ,in my opinion a downside break out of the range and to test the 50 day exponential moving average around 1650 is likely. Investors might consider that level for fresh entries followed by 1610 area (EMA 100) if the price failed to hold the 1650 (EMA 50) major support. Hence,scalping inside the short term range is better option as of now , keep in mind stop loss hunts on range top and bottom are also likely (obvious in a range market)

Short term trend : Range Bound
Resistance : 1730
Supports : 1670 (Fib) , 1650 (EMA 50)