The gold price quoted in euros has recently stabilized above 1,320 euros. From a technical point of view, there is a good chance that the consolidation that has been going on since the beginning of September will soon be completed.
Gold price fixed
The gold price recovered slightly after a turbulent week of trading. At 9:30 a.m. on Monday, the troy ounce of gold on the spot market was $ 1,476. That corresponded to 1,325 euros. The euro has caught up against the US dollar in the past three weeks. The exchange rate increased more than 1 percent to $ 1.1140 recently. A strong euro tends to result in lower prices for the euro gold price.
We consider the technical chart situation as of December 13, 2019 (last Friday) based on the COMEX futures. As of: 1,332 euros per ounce. The euro gold chart thus confirms a breakout from a falling wedge that formed after reaching the all-time high of € 1,418 on September 3, 2019. After the euro gold price reached a 3-month low at 1,320 euros on November 12, the price is moving sideways within a range of 20 euros.
From a technical point of view, what has to happen so that the consolidation can be considered complete and we are experiencing a new rally in the euro gold price? First, a breakout from the sideways movement at 1,340 euros is required. This step would be the prerequisite for rapid price gains of a further 20 euros and a trend change that could bring the price back to the range of 1,400 euros within 3 months. On the other hand, the support at 1,320 euros should not be violated on a daily basis.
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