Gold Stocks $GLD Testing ANOTHER Downtrend Channel Resistance Wall

  • Post category:Stock Trading
  • Reading time:2 mins read
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On November 4, 2022, $GLD tested another downtrend channel resistance wall for a possible channel breakout. Just to be clear, $GLD has testing this channel resistance four times since March 8, 2022, when gold topped and then reversed.

Gold has recently gained on concerns of continued inflation and a potential recession, which have lifted safe-haven and inflationary hedge assets.

Gold prices ended October with their seventh consecutive monthly loss, its longest losing streak in 50 years. This has made people more optimistic about gold. The dollar, which has held near its highest level in 20 years, remains a critical headwind for gold, however, some analysts note that growing recession fears are driving safe-haven demand for gold. Ole Hansen is head of commodity strategy at Saxo Bank. He said that if the Federal Reserve is forced to end its tightening cycle before it reaches 2% inflation, it would cause stagflation which is bullish for gold.

Mayhem hits the metals market—where are prices heading?

$GLD Technical Analysis

GLD is in a technical strong downtrend. Long-term indicators suggest a continuation of the downtrend.

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