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Gold ($1700/oz) is heading to some important technical levels on the weekly chart

Kitco Media
By Rajan Dhall
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Updated
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(Kitco News) - Gold has fallen to reach the $1700/oz level this week but right now the yellow metal is heading to some important support zones. There has been a lot of general weakness as the U.S. dollar has increased with strength and fixed income yields offer a healthy alternative.

Looking at the weekly chart below, the price is heading to the consolidation low. This support has been stubbornly tested seven times on the chart alone. There is also a grey upward sloping trendline which is in very close proximity to the green support area. When these kinds of levels confluence it can be a strong signal.

If the support does break, the next zone is pretty far away at the orange shaded area near $1564.4/oz. Although there are multiple psychological support areas along the way. The precious metal is in a strong downtrend, this could be cemented by the break of the next support which could take the price to levels not seen since April 2020.

Kitco Media

Rajan Dhall

Rajan Dhall is a financial analyst that has been in the trading industry since 2009. From working in Canary Wharf (London) as a head trader to becoming a journalist on a real-time news desk, Rajan has worked his way through many positions in the financial sector. The main area of Raj's expertise lies in technical and statistical analysis. Rajan currently lectures technical analysis with the Society of Technical Analysts (STA) at the London School of Economics. One of the main areas Rajan has based his analysis on is probability. Raj completed his certification (probability) with Harvard and regularly uses probability theories in his analysis as he feels it helps him add value to his clients and customers.

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