Chapter 4 Gold reaching 2020 bottom
fundamental:
The ounce of gold is trading on the small time frames with a range between 1696-1736 levels, dominated by negative pressure, despite the buying operations to try to touch the bearish trend, but the bulls were unable to do so.
On the other hand, we expect the US Federal Reserve to raise the interest rate by another 75 basis points on September 21, which will contribute to the return of the dollar to the top to push inflation so that gold will fall with an attempt to break the 2020 low at 1680 levels.
All scenarios are available with fast action, so we recommend balancing contracts when trading.
Technical:
On the weekly time frame, we see a reversal signal and as it is achieved, we will see a retest of 1736 levels.
As for the daily time frame, we see a continuous balanced bearish trend despite the bulls' attempts to rise through repeated corrections. This is also confirmed by the four-hour time frame.
With the end of the correction process, we will see a retest of 1969 levels, and by breaking it, we await a fierce battle at the bottom of 2020 and then for every recent incident.
