Gold buyers testing the waters in search of a potential push to the upside

Technical Analysis

Gold trades up by 0.8% on the day

For bank trade ideas, check out eFX Plus

Price is trading closer to $1,855 currently as gold buyers are starting to try and push things in their favour a little in trading today.

Of note, we are seeing price move back above the 200-day moving average (blue line) @ $1,845.43 as buyers are also seizing near-term control now:

Gold H1 20-01

The near-term chart reveals that gold is pushing back above its 200-hour moving average (blue line) as well and that shifts the near-term bias to being more bullish.

However, I would still argue that price action remains caught in the broader consolidation range around $1,830 to $1,860-63 and the upper end of that band is still the key resistance region that gold buyers will have to breach to solidify any potential breakout.

The slightly weaker dollar today also plays into gold’s favour although one of the key factors driving the upside push on the day remains that of flagging real yields:

Gold

As such, buyers are starting to test the waters again for a potential push higher but there is still more work to do in order to solidify that momentum as evident by the technical picture highlighted above.

Articles You May Like

S&P index reaches 6000 (but just barely so far)
Forex Market Pauses Ahead of US Retail Sales, UK GDP
Silver Price Forecast: XAG/USD drops to nearly two-month low, 100-day SMA breakdown in play
AUDUSD Technical Analysis – The market expects the Fed to pause soon
Pound Sterling rebounds against USD even though US inflation remains sticky

Leave a Reply

Your email address will not be published. Required fields are marked *