Support 1800 can be defined as a "zone of weak balance"
Gold remained under strong pressure of bearish sentiment throughout the last trading week, which allowed forming an up-dynamic sell-off towards the end of the trading week and testing the key support level of 1.800. Below the level of 1.800, there is a large deferred demand for short positions to buy. The opening of Asia on Monday can be defined as a "zone of weak balance." But, due to the fact that the beginning of the week is saturated with a large number of economic statistics and a general negative component that puts pressure on the global financial system, this factor can serve as a trigger for a correction, followed by the formation of an upward dynamics of gold strengthening with the target of 1.850 - 1.900 (the key zone for continuing growth). While the asset is trading within its current downtrend, it has the potential for further decline and a break of 1.800 support would mean strong demand for short sellers with a target of 1.750-1.7000 during the trading day on Monday.
Gold remained under strong pressure of bearish sentiment throughout the last trading week, which allowed forming an up-dynamic sell-off towards the end of the trading week and testing the key support level of 1.800. Below the level of 1.800, there is a large deferred demand for short positions to buy. The opening of Asia on Monday can be defined as a "zone of weak balance." But, due to the fact that the beginning of the week is saturated with a large number of economic statistics and a general negative component that puts pressure on the global financial system, this factor can serve as a trigger for a correction, followed by the formation of an upward dynamics of gold strengthening with the target of 1.850 - 1.900 (the key zone for continuing growth). While the asset is trading within its current downtrend, it has the potential for further decline and a break of 1.800 support would mean strong demand for short sellers with a target of 1.750-1.7000 during the trading day on Monday.
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