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Gold Prices Drift Lower on Higher Stock Indices

Gold price chart

At the time of writing, gold prices were lower as European stock markets traded higher. Gold prices were down by 0.88%, while the DAX index was up by the same amount. The next support level in gold prices is last week’s low of $1480, and the most bullish investors will probably try to buy when the price nears $1480. If the price indeed manages to remain above last week’s low the price might revisit the August high of $1535, followed by a flag pattern target at $1545.

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If the price fails to hold above the $1480 low, gold prices might find support at the $1457 level, followed by the $1439 level, these two levels are the 50%, and 61.8% correction level of the bull leg that started from the July 1 low of 1380 and ended with the August high at $1353. The multi-week trend will remain bullish as long as the price trades above the July 17 low, so a 50% correction of the rally from the July 1 low will probably be well supported by investors that are looking for a good risk-reward ratio. The multi-week trend is also supported by the world’s biggest central banks cutting interest rates amid a global economic slowdown.Download our latest quarterly market outlook for our longer-term trade ideas.

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