Gold, Chart of the Week: Bulls are moving in, but weekly levels are eyed
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $9.99 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFER- Gold has been creeping in on the weekly target, but bulls are starting to move in.
- A period of consolidation could be on the cards if the bears do not commit below near to $1,820.
The price of gold deteriorated last week into the weekly support as forecasted in the pre-open analysis as follows:
Gold weekly charts
Prior analysis
Gold, live chart, pre-open
Gold daily charts
Prior analysis
Gold, live chart, pre-open
The price has closed below a critical structure around $1,820, so the focus is on the further downside for the week ahead. However, a correction could be in order to restest the old support before embarking on $1,780 and below.
Gold, H4 chart
The price on the four-hour time frame is problematic. The bears will hope for a commitment on a correction towards the prior day's close near 1,820 but the dojis are signifying that the bulls are moving in. A subsequent move above 1,830 will likely lead to a period of consolidation throughout the coming week above current lows.
Meanwhile, analysts at TD Securities explained that gold specs heavily reduced length, cutting longs and adding shorts heading into a highly anticipated US CPI print.
Indeed, the inflation data came in higher-than-expected. Despite a short-term bump, the yellow metal has since fallen victim to higher nominal and real rates, along with less liquidity due to QT. Sentiment is poor in precious metals, and elevated positioning analytics still argue for potential additional pain for gold bugs. Indeed, CTA trend followers have also joined the liquidation party, and with prices now below the bull-market-defining uptrend, a significant liquidation event may currently be unfolding.
- Gold has been creeping in on the weekly target, but bulls are starting to move in.
- A period of consolidation could be on the cards if the bears do not commit below near to $1,820.
The price of gold deteriorated last week into the weekly support as forecasted in the pre-open analysis as follows:
Gold weekly charts
Prior analysis
Gold, live chart, pre-open
Gold daily charts
Prior analysis
Gold, live chart, pre-open
The price has closed below a critical structure around $1,820, so the focus is on the further downside for the week ahead. However, a correction could be in order to restest the old support before embarking on $1,780 and below.
Gold, H4 chart
The price on the four-hour time frame is problematic. The bears will hope for a commitment on a correction towards the prior day's close near 1,820 but the dojis are signifying that the bulls are moving in. A subsequent move above 1,830 will likely lead to a period of consolidation throughout the coming week above current lows.
Meanwhile, analysts at TD Securities explained that gold specs heavily reduced length, cutting longs and adding shorts heading into a highly anticipated US CPI print.
Indeed, the inflation data came in higher-than-expected. Despite a short-term bump, the yellow metal has since fallen victim to higher nominal and real rates, along with less liquidity due to QT. Sentiment is poor in precious metals, and elevated positioning analytics still argue for potential additional pain for gold bugs. Indeed, CTA trend followers have also joined the liquidation party, and with prices now below the bull-market-defining uptrend, a significant liquidation event may currently be unfolding.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.