Gold Q4 Technical Forecast: Long-term Price Pattern Remains in Focus

Gold Q4 Technical Forecast: Long-term Price Pattern Remains in Focus

Gold Technical Outlook:

Last quarter’s outlook ended on this note – “For the next quarter the technical outlook doesn’t appear set to offer any real clear looks, so we might need to be patient before establishing a firmer intermediate-term trading bias.”

This may be the case again as we head down the final stretch of the year. It doesn’t mean we can get complacent towards a big move developing, because one could take hold, but it’s prudent to keep expectations aligned with the current reality.

The developing descending wedge remains a longer-term focus. The pattern has been forming for well over a year now and so when it eventually breaks the move could be quite powerful. For it to mature further a test of the lower side of the formation could happen relatively soon.

The big horizontal level to watch is right around 1675; it has been in play as resistance and support on numerous occasions since the early days of the pandemic. The most recent test and hold came during the August flash-crash. Will it act as a floor again in Q4, or could it break and usher in a wave of selling?

On the top-side, the line to watch is the upper threshold of the pattern running lower from the August 2020 high over the May high. This could act as a ceiling, but if it breaks then the outlook could quickly brighten for gold.

Looking to when the wedge could finally break, the apex may not be met until sometime in early 2022. If this is the case, then an explosive pattern will have developed with the extended coiling price action and the wait between now and then may be well worth the momentum that the breakout brings.

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

—Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at@PaulRobinsonFX

This content was originally published here.

Rate:

0 out of 5 stars(0 ratings)

Subscribe to Our Newsletter

money for gold logo

Learn About Buying and Selling Gold for the Best Prices

Get the latest news and expert advice on Gold!

We don’t spam! Read our privacy policy for more info.

Leave a Reply

Related

Okay, so we are having a little bit of fun here… but this really is a massively bullish pattern for Gold. And we have…

Read more
Pakistan gold price falls by another Rs2,600  - SAMAA

The gold price in Pakistan fell by Rs2,600 per tola since August 5. A tola of gold can now cost Rs108,600, according to…

Read more

Gold Talking PointsThe price of gold attempts to retrace the decline from the beginning of March as the US 10-Year…

Read more

Share Great Content for Our Resource Section

About

MoneyForGold.com is a resource site created for those looking to sell their personal collection of gold - whether it’s jewelry, coins, bars, antiques, etc., anything made from gold can be sold for quick cash. We encourage visitors to signup and share quality “Money For Gold” resources.

Have a question or comment? Email us at: contact@moneyforgold.com

Navigation
MoneyForGold.com
50% Complete

Learn Where to Sell Your Gold for the Best Prices

Free 3-Minute, Practical Stories Delivered to You Everyday!
Buy, Sell, Invest in Gold Today!