Gold - Signs of awakening or the downtrend correction?

Surprisingly, gold has been holding up relatively well despite the recent rate hike by the FED. Currently, it trades near the 1770 USD price tag, up over 5% from its low on 21st July 2022. We continue to be bullish on XAUUSD in the medium and long term. However, in the short term, we do not rule out that gold will continue to be choppy before regaining any significant momentum to the upside or downside.

*The retracement toward the 50-day SMA may coincide with the end of the downtrend correction. Because of that, we are cautious.

Illustration 1.01

Illustration 1.01 shows sloped resistance levels for XAUUSD. If gold manages to break above Resistance 1, it will bolster a bullish case for it in the short term. The same applies to the breakout above Resistance 2.

Technical analysis - daily time frame
RSI, MACD, Stochastic, DM+, and DM- are all bullish. Overall, the daily time frame is bullish.

Technical analysis - weekly time frame
Stochastic is slightly bullish. RSI and MACD are neutral. DM+ and DM- are bearish. Overall, the weekly time frame is bearish.

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 be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.

Trade active:

Due to the stock market's impending selloff, we are turning relatively bearish on gold (in short-term/medium-term).