Precious metals rose sharply on Monday, whole gold hit a four-week trading high as some early signs emerged that the yellow metal made a significant price bottom recent around the $1,900 support level.
Metals are basically seeing some safe-haven demand on worries about inflation becoming even more problematic in the coming months some profit taking by the shorter-term futures traders, and amid rising bond yields and a selloff in the crude oil market added to the risk-off sentiment.
The Russia-Ukraine war is in its seventh week amid no signs of any ceasefire adding to the negative sentiment. The Covid pandemic continues to surge in China, which has once again clouded the growth outlook for the world’s second-largest economy.
Inflation worries are also near the front burner of the marketplace, which could be bullish for gold. The U.S. data point of the week comes Tuesday with the consumer price index report for March, which is expected to come in hot at up 8.4%, year-on-year.
It’s likely to be a short and volatile trading week as U.S. and other world markets are closed on Friday for the Good Friday holiday. However, if we see a double-digit inflation report, gold is trading above $2,000 by the end of the week.
Current sentiment metrics towards gold show that traders are becoming less bearish, which is not a good sign. The ActivTrader market sentiment tool shows that 48 percent of traders are bearish towards gold.
While this is a minor sentiment bias, it is mildly bearish for gold price that after retail has, in the majority, remained long towards gold during the bulk of the run-up towards $1,950.
For me, the current sentiment bias towards gold suggest that gold can still remain range bound as the majority of traders aren’t that bearish towards the metal, which is typically a bad sign for further upside.
Gold short-term Technical Analysis
The short-term technicals for the yellow-metal show that a large head and shoulders pattern, which is technically bearish and could sparked further price losses in the yellow-metal.
Looking at the four-hour price chart, the size of the bearish price pattern is pointing towards a coming move of the overall size of $70.00. This pattern could be invalidated or activated.
See real-time quotes provided by our partner.
Gold Medium-term Technical Analysis
The daily chart shows that gold remains a strong buy while trading above the $1,920 level, after bulls rallied the price above a massive wedge pattern.
With the bullish breakout underway we could easily see gold price tackling $2,000 again. If the technical situation becomes worse under the wedge, I would expect that the price of gold could hit $1,850.
See real-time quotes provided by our partner.
A comprehensive website for traders, both experienced and new! Checkout our content and learn how to invest and speculate in the markets using margin traded products. Our team of educators has extensive experience and is here to help. Enjoy!
© 2020 YouTrading UK - Leaders in Trader Training.
Cookie | Duration | Description |
---|---|---|
__cfduid | 1 month | The cookie is used by cdn services like CloudFare to identify individual clients behind a shared IP address and apply security settings on a per-client basis. It does not correspond to any user ID in the web application and does not store any personally identifiable information. |
_wpfuuid | 11 years | This cookie is used by the WPForms WordPress plugin. The cookie is used to allows the paid version of the plugin to connect entries by the same user and is used for some additional features like the Form Abandonment addon. |
cf_use_ob | This cookie is set by the provider Cloudflare content delivery network. This cookie is used for determining whether it should continue serving "Always Online" until the cookie expires. | |
cookielawinfo-checbox-analytics | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics". |
cookielawinfo-checbox-functional | 11 months | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". |
cookielawinfo-checbox-others | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. |
cookielawinfo-checkbox-advertisement | 1 year | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Advertisement". |
cookielawinfo-checkbox-necessary | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". |
cookielawinfo-checkbox-performance | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". |
viewed_cookie_policy | 11 months | The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. |
Cookie | Duration | Description |
---|---|---|
YSC | session | This cookies is set by Youtube and is used to track the views of embedded videos. |
Cookie | Duration | Description |
---|---|---|
_ga | 2 years | This cookie is installed by Google Analytics. The cookie is used to calculate visitor, session, campaign data and keep track of site usage for the site's analytics report. The cookies store information anonymously and assign a randomly generated number to identify unique visitors. |
_gid | 1 day | This cookie is installed by Google Analytics. The cookie is used to store information of how visitors use a website and helps in creating an analytics report of how the website is doing. The data collected including the number visitors, the source where they have come from, and the pages visted in an anonymous form. |
Cookie | Duration | Description |
---|---|---|
_fbp | 3 months | This cookie is set by Facebook to deliver advertisement when they are on Facebook or a digital platform powered by Facebook advertising after visiting this website. |
fr | 3 months | The cookie is set by Facebook to show relevant advertisments to the users and measure and improve the advertisements. The cookie also tracks the behavior of the user across the web on sites that have Facebook pixel or Facebook social plugin. |
IDE | 1 year 24 days | Used by Google DoubleClick and stores information about how the user uses the website and any other advertisement before visiting the website. This is used to present users with ads that are relevant to them according to the user profile. |
test_cookie | 15 minutes | This cookie is set by doubleclick.net. The purpose of the cookie is to determine if the user's browser supports cookies. |
VISITOR_INFO1_LIVE | 5 months 27 days | This cookie is set by Youtube. Used to track the information of the embedded YouTube videos on a website. |
Cookie | Duration | Description |
---|---|---|
_gat_UA-42160853-2 | 1 minute | No description |
cf_ob_info | No description | |
CONSENT | 16 years 8 months 3 days 6 hours 2 minutes | No description |