Gold took some step back after its breakout above 1800 USD. It currently trades around 1792 USD. We think upper bound of downward moving channel should be closely observed in the following days as it currently acts as immediate support for gold. Plunge below this level could lead to short term weakness. Although, we expect 1750 USD (previous support/resistance) to hold in case of further selling pressure. Stochastic is bullish. RSI continues to change back and forth from neutral to bullish on daily timeframe. MACD has bullish direction and we expect it to perform crossover above 0 points. We expect this to be very bullish for gold. In the big picture we remain bullish on gold with medium term price target of 1850 USD and long term price target of 1875 USD. Though, our price target for next 12 months is much higher at 2100 USD.
Prior developements from 10th August 2021: Here we noted that price of gold was attractive for long entry. We also announced that we believe gold is near end of its struggle to move higher.
Disclaimer: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.