Gold can be expected to fall further toward the next round support level 4000.00 (which reversed the price multiple times in July and August).
- Gold broke support level 4095.00
- Likely to fall to support level 4000.00
Gold recently broke the support level 4095.00 (lower boundary of the daily sideways price range from the start of October, as can be seen from the daily Gold chart below). The breakout of this support level created the long daily Japanese candlestick Black Marubozu, which extended the active primary correction 2 from the end of August – which is moving inside the daily down channel from September.
Given the clear daily downtrend and the strongly bearish sentiment seen across the precious metal markets today on rising Fed rate-hike expectations, Gold can be expected to fall further toward the next round support level 4000.00 (which reversed the price multiple times in July and August).