Market Analysis: Price of Gold Drops Below $1,950

<img src="https://fxopen.com/blog/en/content/images/2023/11/Gold_Bar.jpg" alt="Market Analysis: Price of Gold Drops Below $1,950" /><p>This happened for the first time since mid-October, when gold was rapidly rising in price on fears related to the escalation of the military conflict in the Middle East.</p><p>At the same time, the psychological level of USD 2,000 per ounce demonstrated its importance.</p><p>Notice the volatility spikes around it — the bulls were active in the attacks, noticeable on the 4-hour chart, but all the progress made on the upward impulses was almost immediately canceled out by the bears.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/11/91–2-.png" alt="Market Analysis: Price of Gold Drops Below $1,950" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/11/91–2-.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/11/91–2-.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/11/91–2-.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/11/91–2-.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>The graph shows:<br>→ formation of a reversal pattern SHS (head-and-shoulders). With some subjectivity, we can assume that the “neck” level is around USD 1,970. But it has already been broken after a weak rebound;<br>→ the price dropped below EMA (100).</p><p>The price can be supported by a trend line drawn at the highs of August-September. After a bullish breakout, it could serve as market support in the area of USD 1,915 per ounce. In the same area is the 50% Fib level of the upward momentum from the October lows to the peak above USD 2,000. If the price falls to the USD 1,910-1,920 zone, it could serve as a support for the bulls to try to resume the bullish trend, if the news background also contributes to this.</p>