Market Analysis

Gold: Time to get bullish?

The Gold bulls were too weak to break the resistance band between US$1313 and US$1322 shown in our last analysis (link: Gold: Will the bulls take over again?). The support zone at US$1303 did not stop the market. Only the support at US$1281 was able to stay the market yesterday. The question now is whether the bears have ended their run?

The 38- and 50-day smoothing lines have crossed. The short-term line has crossed its longer-term line from top to bottom, which could be interpreted as a bearish sign.

The MACD line is below its trigger line, and the histogram is in negative territory.

Will the risk appetite of investors move? The USD/CHF has seen a slight rise over the last few days. This could indicate that investors’ appetite for risk is diminishing and that they prefer investments that are considered safer.

Should the US$1281 area provide support to the Gold market for the next few trading days, the first resistance moving upward will be in the US$1302 area. For further positive progress, the market must then break the band between US$1313 and US$1322. The next significant structural level could then be in the area of the February 20th high around US$1341. If the market can also overcome this, further resistance zones could be in the US$1352 and US$1366 area.

However, if the ÙS$1281 zone is too strong for the bulls, the US$1256 or US$1231 area could support the market. If the market breaks through here, a re-evaluation would be necessary as far lower prices could be shown.


Gold Daily chart | Source: ActivTrader

Gold Daily chart | Source: ActivTrader 


Written by Daniel Schuetz, External Analyst

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