Gold – Point & Figure Analysis – 06/28/24

The 06/02/24 blog “Gold Nearing Important Support – 05/31/24”  used Point & Figure analysis to determine important support was made at the 05/03/24 bottom.  Subsequently a secondary support area was made, the key date is 06/07/24.   A break below the 06/07/24 bottom could herald the coming of a bigger break at the 05/03/24 bottom.

The daily Point & Figure – Gold Continuous Contract ($GOLD) chart courtesy of StockCharts.com updates the action.

Note the recent double bottom on the Point & Figure chart.   The more important of the two bottoms occurred on 06/07/24.  In terms of Gold in U.S. Dollars (XAUUSD) its 2,286.86. 

With Point & Figure analysis support/resistance areas are rows of “X’s” and “O’s”.  The length of the row indicates potential strength or weakness.  A continuous row of nine is stronger than a row of three.

Note that above the primary support there’s only a row of two, which implies weak support.

The primary support in XAUUSD is 2,277.43, below that is air.

A break below the 05/03/24 bottom could trigger a sharp drop to the 2,170 to 2,200 zone.