- Gold is trading nearly 4% lower on Tuesday despite USD weakness.
- The gold bugs will be looking at technical support zones and the previous all-time high is next.
Gold 4-hour chart
Gold seems to be losing some of it shine this week. Now the bulls will be looking for support zones and some of the long term holders could have been profit-taking after the record-breaking rally. Now the new all-time high stands at USD 2075.14 per troy ounce. If there is to be another turn higher then that will surely be the target.
Looking closer at the chart, the black horizontal support line at USD 1920.94 per troy ounce is the next support. This was also the previous all-time high from September 2011. Below that, there is also a red upward sloping trendline, it has only had two touches as of yet but it could be significant in the future.
The indicators are understandably bearish. The Relative Strength Index is in the oversold area. This could suggest a small pullback is on the way before the underlying move lower continues. The MACD histogram is firmly red and the signal lines have dipped below the zero area for the first time since 10th June.
Overall, this is still a firm uptrend. This could be profit-taking or a rotation into other assets but watching out for a support level would be wise as longer-term, buying on dips could still be the play here.