Gold price is traded on 5.5 year low by reachin 1052.67 support: the price is under pressure by bearish fundamental news events from the US and strong US dollar which is breaking 100.31 resistance to above for now. Janet Yellen gave a speech to the Washington Economic Club providing the investors more arguments for FOMC to hike interest rate in December. And because of that gold price did lose so much during the Yellen’s comments.
From the technical point of view - the daily price was started the bearish breakdown in the end of December this year:
- Chinkou Span line broke the price from above to below.
- Tenkan-sen line crossed with Kijun-sen line of Ichimoku indicators for the bearish condition.
- The price crossed Ichimoku coud and came to the bearish area of the chart.
Some analytics do not have very clear clue concerning the market bottom for the gold considering the ranging market condition in the near future: the price can be bounced from one of the key support level for the local uptrend as the bear market rally to start the bearish breakdown from the new higher level for example.
