GOLD is on a Bullish longterm. Monthly still Bullish.
XAU/USD: in perspective — continued asset growth
The current dynamic
Gold prices are growing and traded at the level of $1842 per ounce.
For the second consecutive day, the instrument has the upward trend of corrective. The initial momentum for positive momentum was given by the significant decline in the US dollar index which is inversely correlated with the precious metal. Since Monday, the index has dropped from 91,120 to the current 90,300.
Yesterday, the shares received support after the publication of results of the placement of U.S. 3-year Treasuries, whose profitability fell sharply, to 0.196%, instead of 0.234% in the previous auction. Today, the placement of 10-year Treasury bonds will be held and, if the result will also fall below the profitability of the previous auction at 1.164%, gold can continue the upward trend.
Levels of support and resistance
The quotes have returned within the boundaries of the previously past side channel, posting above the helpline. The technical indicators are in the purchasing phase.
Resistance levels are: 1850.0, 1875.0.
Support levels are: 1830.0, 1785.0.
Trading scenarios
In case of asset continue global growth and also, the price to be fixed above local resistance at level 1850.0, the purchase positions with objective in 1875.00 will be current. We recommend placing Stop Loss order at level 1830.0. The lead time is: 3 days.
If the asset reverses and the corrective descent continues and the price is below support at level 1830.0, the sales positions with goal in 1785.0 will be current. We recommend placing Stop Loss order at level 1850.0.
Good luck for your trades.
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
The Chart and Analysis totally make sense! Great work!! However in the short term Gold is showing weakness and I tend to believe it going to retest the late November 2020 support levels. Without a doubt Gold is bullish in long range charts, which likely break the previous high and creating a new high..
miketiger
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@Prasad_Ari, thanks for your thoughts. Maybe go there. Let see this week where gold goes. But he go to broke 30 or 50 for sure
Apaulsen35
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@Prasad_Ari How do you surmise Gold is weak? the dollar is over bought and is coming down. If the stock market didn't retrace today Gold would be at 1860 ish. It maintained a support above 1835 and closed above 1840. Everyone keeps thinking Gold is going to 1600. SMH. Gold historically has only touched the very bottom support once in Nov over the last 6 months. It stays in the middle channel 90% of the time. Gold is bullish.
Prasad_Ari
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@Apaulsen35, Gold is under selling pressure, since November 2020. Reason could be Bitcoin & Stocks are pulling some oxygen out of Gold! I agree fundamentally nothing wrong with Gold. The volumes and momentum are weak which defines the future direction, that's why for the Short Term, I think there is a high probability of Gold retesting $1775 (November 2020) support again, time will tell!!
Prasad_Ari
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You may notice Price Volume Trend (PVT) is continuously falling since fall of 2020, I assume there going to a dip before reversing and head towards new highs
miketiger
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@Prasad_Ari, thank you for sharing your ideas! great!
miketiger
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@Prasad_Ari, thank you for sharing your ideas! well done!