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Gold prices retreat from $1,153 levels

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Nov. 20 2020, Updated 3:12 p.m. ET

Gold trading within a range

Gold prices for April futures contracts continued trading in a downward trend. Prices broke the key support level on March 10, 2015. However, the prices retreated and closed just above the support at the close of trade on Tuesday, March 10. A strong dollar pushed gold prices lower yesterday.

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Support and resistance

Market conditions are bearish for precious metals like gold and silver. The key support for gold is at $1,160 per ounce. The current momentum could push gold lower. The next support for gold is at $1,140 per ounce. Gold prices hit these levels in November 2014. In contrast, positive market news could push gold to the nearest resistance of $1,180 per ounce. This level was hit in early February 2015.

Based on the gold chart, prices could trade between $1,140 and $1,180 in the short term. Industry experts suggest that precious metals could fall further with the rising dollar.

The RSI (relative strength index) and MACD (moving average convergence divergence) suggest that the price could trade in a downward channel—unless there’s any bullish news triggers. Then, the trend will change.

The decline in gold prices impacts key gold ETFs like the iShares Gold Trust (IAU) and the VanEck Vectors Gold Miners ETF (GDX). It also affects the performance of gold stocks like NovaGold Resources Inc. (NG), Silver Wheaton Corp. (SLW), and Barrick Gold (ABX). Barrick Gold and Silver Wheaton Corp. stocks account for 8.64% and 4.6% of GDX.

For the latest updates on gold, visit Market Realist’s Gold ETFs page.

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