Recently, gold nearly touched the 2000 USD price tag. However, it failed to move substantially higher because profit-taking quickly ensued as the general stock market started to fall. Nevertheless, we continue to be bullish on gold in the medium-term and long-term. But we are growing increasingly nervous due to the intense persistence of selling pressure in major market indices. If this weakness lasts further, gold might see further sideways price action or selling pressure in the short term. At the moment, we will pay close attention to the immediate support/resistance level.
Technical analysis - daily time frame RSI turned bearish as gold failed to move above 2000 USD. MACD and Stochastic turned bearish too. DM+ and DM- performed bearish crossover, suggesting the beginning of the bearish trend. Although ADX signals weak or no momentum being contained within the trend. Overall, the daily time frame is bearish; however, the lack of momentum suggests sideways moving price action in the short term.
Technical analysis - weekly time frame RSI and Stochastic are bearish. MACD is due to perform a bearish crossover in the upper area of the bullish zone. DM+ and DM- show bullish conditions in the market. ADX signals the growth of momentum. Overall, the weekly time frame is mixed.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Thanks for a clear technical viewpoint on /GC. I wonder if Gold will break the support you identified because of how the dollar continues to strengthen and interest rates continue to rise.
Tradersweekly
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@Burning-Theta, I think the FED will put more pressure on the U.S. economy if it will rise interest rates again. Additionally, inflation is nowhere to go. Therefore, I think the current weakness in gold is just transitory - though, it may continue for a little while (especially if the stock market goes lower). It is why I abstained from setting a short-term price target for XAUUSD; the price action has been extremely choppy. Thanks for engaging in the conversation.