Bears drive the car and are in the mood for a long drive

Comex Gold

MSRP: $2,488

Comex Gold’s daily chart looks very weak and indicates bearish momentum. Gold declined from the $2,531 level and dipped below $2,500, putting psychological pressure on the bulls. The way the bears are reacting on the chart, we can announce in the short term that gold has topped and any buy above the $2535 level with 4-hour durability will change the outlook from bearish to bearish. It will not be an easy journey for the bears as well as they have to face many acid tests/hurdles i.e. support level like $2453 and $2435 level.

From a technical perspective, we can see that a rounded top pattern is forming on the H4 chart, which suggests a bearish view as long as the 2530 level remains intact. The overall pair trades below all major and minor EMA lines. A parabolic top has formed on the daily chart. 2435 level is only a major obstacle for bears if we see panic selling below this level, we can see selling around 2350 level, 2275 level and more.

On the fundamental outlook ADP Employment, ISM Service PMI, Jobless Claim and NFP is in line for the week, keep an eye on the data. There is a good chance that we will see selling pressure in gold. Overcrowded long positioning could be the reason why the commodity is not rising as expected. Holding below the $2500 level, which is the psychological level, gives strength to the bears. Gold is down despite risk sentiment turning negative following weak US manufacturing data.

H4 Gold Chart with RSI and Major Moving Average