According to Daily FX Trading Instructor James Stanley, the gold price Australia has found support again, wiggling back for one more resistance test. However, the yellow metals have been busy coming into the season, giving investors some hope.
Looking at the prior support zone, many people started thinking if they should be buying/investing gold bullion in a super fund. While others still keep an eye on the market to see if now is the best time to sell gold jewelry.
With this said, the prices were low in May and allowed gold buyers to control the bidding prices above an 1800 psychological level. Yet, it eventually came up against another test with resistance around the 1880 level against Fibonacci.
Still, the recovery remains uneven and resulted in rising wedge info. But these formations are often tracked aiming for bearish reversal, and boy did the Australian gold price reverse. Price action during June resulted in slalom development continuing into July.
But the good news for selling gold jewelry if you want to sell is support came into play, reaching the 1680 level. At this moment, it is a massive price as the yellow metals been tested on three different occasions as gold in the summer of 2020 topped out.
So, the support test has led to an even stronger topside run. Yet, it remains an uneven move as gold prices are still between the rising wedge. But for many gold buyers, the latter broke down earlier in the month. Last week was a difficult time for the price of gold.
Gold sold off every day from Monday to Friday, leaving a rough weakness throughout the week opening as the price dropped, reaching 1740 before it started to bounce again. Still, what does it mean for gold buyers and people wanting to sell gold items in the short term?
Well, for now, the resistance test found at the prior support marked at the Fibonacci levels observed creates convergence. The zones run from 1763 to 1771. This leaves a significant response for gold sellers. With a resistance below the 1763 to the end of the day. It keeps doors open for a bearish continuation.
Yet, for now, it might be a bit early, but when you look higher on the chart presented by IG.com. You might get some attractive spots for a lower to high resistance testing the gold price at 1771. Or there might be support turned resistance that it will end on 1785.
So, looking at the bigger picture, the gold price is still within range and has been steady since 2020. Hence, now this is huge if. However, if gold sellers could hold the line, you may have a 4th support test around 1680, allowing for a bearish breakdown.
But for now, the action of the gold price is within the technical criteria formed over the two years as we saw many ranges like gold price action. Still, it does not mean you should not buy gold bullion, as now is the best time to invest in this precious metal. Why, as the price of gold is not too high. For more information on gold prices please visit Melbourne Gold Company.
