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(Kitco News) – Gold saw quite a strong sell off at the start of the week, leading traders and analysts to look for potential support levels on the higher timeframes. The downside technical signals have been quite strong and there are some interesting price levels nearby.
The weekly chart below shows that there is an ascending trend line that could provide some respite for the bulls. Beyond that, the strongest support level could come from the green zone near $1800/oz. The main level on the chart is the consolidation blue bottom at $1671.70/oz. The price tested the zone four times and rebounded strongly on all occasions.
The current strength of the US dollar is causing all sorts of problems in commodity markets. The dollar index is trading at 103.80, up 16.79% since January 4, 2021. This is also the highest level the dollar index has traded since January 2, 2017 .
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