The XAUUSD on the hourly timeframe has been following a downtrend since 25 February. The precious metal dipped below the $1300 on 1 March,
and recorded a low of $1290.07. The recent bearish move in the Gold came after a steep rise in the US Treasury, which resulted in stronger US Dollar. The stronger US Dollar then pushed the price of the Gold lower. The hourly chart of the XAUUSD confirms the negative sentiment in the price movement as the yellow metal is making successively lower tops and lower bottoms; hence downtrend. The lowest value of the period under study was recorded on 1 March when price registered the low of $1290.07. The highest value of the period under study was registered on 25 February when price reached $1332.47. Bears are in control of the market as the price remains below the $1300 mark.
By applying Oscillators Analysis, all three indicators confirm the negative bias in the market. As the chart shows, price is well below the 200-period Moving Average. Additionally, Momentum Oscillator is below the base-line which also indicates the bearish outlook for the XAUUSD. The MACD (Moving Average Convergence/Divergence) is recording values below the zero-line which shows negative sentiment in the safe-haven asset as overall outlook remains bearish. In alternative scenario, the first resistance lies at $1312.58 (the last top recorded on 1 March), price need to breach this resistance level in order to regain bullish sentiment which seems unlikely at this point of time.
Definitely, it remains to be seen how far lower the bears will manage to push the price of the Gold.
Disclaimer:
This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.
and recorded a low of $1290.07. The recent bearish move in the Gold came after a steep rise in the US Treasury, which resulted in stronger US Dollar. The stronger US Dollar then pushed the price of the Gold lower. The hourly chart of the XAUUSD confirms the negative sentiment in the price movement as the yellow metal is making successively lower tops and lower bottoms; hence downtrend. The lowest value of the period under study was recorded on 1 March when price registered the low of $1290.07. The highest value of the period under study was registered on 25 February when price reached $1332.47. Bears are in control of the market as the price remains below the $1300 mark.
By applying Oscillators Analysis, all three indicators confirm the negative bias in the market. As the chart shows, price is well below the 200-period Moving Average. Additionally, Momentum Oscillator is below the base-line which also indicates the bearish outlook for the XAUUSD. The MACD (Moving Average Convergence/Divergence) is recording values below the zero-line which shows negative sentiment in the safe-haven asset as overall outlook remains bearish. In alternative scenario, the first resistance lies at $1312.58 (the last top recorded on 1 March), price need to breach this resistance level in order to regain bullish sentiment which seems unlikely at this point of time.
Definitely, it remains to be seen how far lower the bears will manage to push the price of the Gold.
Disclaimer:
This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.