Português
Español
Français
русский
Gold has moved to its highest trading level since June 2022 as the yellow metal continues to surge after staging a positive yearly price close after coming under pressure for much of the second half of 2022.
Going forward, the release of the FOMC meeting minutes and the ISM report are likely to be the next fundamental drivers, however, gold’s technicals are looking increasingly impressive.
Technically, golds run above its 200-day moving average is a positive sign. It is imperative that the yellow metals continue to make traction above this key technical metric this week.
Additionally, gold has recently staged a much-needed range break. The range break in question is now the $1,820 to $1,880 range, rather than the $1,175 to $1,820 price range.
Much of golds success will depend on the risk-on and risk-off environment, additionally, the US dollars success. A weakening US dollar and the FED reducing rate hikes places upside pressure on gold.
Current sentiment metric towards gold shows that sentiment has become slightly less bullish, which hints that retail are leaning towards more gains this week.
The ActivTrader market sentiment tool shows that 51 percent of traders are bullish towards gold. Going forward, we really need to see a negative bias by retail to help the chances of a sustained recovery.
Gold short-term Technical Analysis
According to technical analysis gold the price of gold has ignited a large, inverted head of a head and shoulders pattern on the four-hour time frame.
These type of pattern invalidations are usually very bullish In theory, if $1,800 support holds we could see a push back towards the range high, around $1,880 level.
See real-time quotes provided by our partner.
Gold Medium-term Technical Analysis
The daily chart shows that the yellow metal has moved back inside a new price range, and we should keep a close watch on the new trading range of $1,825 to $1,880.
We could see the price of gold revisit the top of its range again around $1,880 over the coming weeks. However, before that the price of gold has an important battle with its 200-day moving average, around the $1,800 level.
See real-time quotes provided by our partner.
