The price
of gold accelerated its bullish momentum towards the end of the week while the
equities markets retraced to the downside as the risk aversion came back into
play after the terrorist attacks on Barcelona, Spain and as the doubts keep
mounting on the Trump administration. We have been waiting for a visit of gold
to the 1300 level and this Friday the price did reach that level to bounce to
the downside. The strong bearish bounce is an indication that there could have
been a large profit taking at that zone as shown on the daily chart. Even
though the price of gold has bounced to the downside, the bullish short-term
trend is still in place. But the price must break above the 1300 level in order
for the trend to persist. To the downside, the most relevant support is at the
confluence area of the 55 day EMA and the 200 week EMA around the 1256 level.
Insightful notes.
ReplyDelete$1,300 proved to be a very strong resistance.
ReplyDeleteI agree with your assessment.
ReplyDeleteGold will test $1300 again.
ReplyDeleteA correction could be on the way.
ReplyDeleteI personaly incline it shall rise again to higher levels
ReplyDeleteGreat assessment as usual!
ReplyDelete