Gold Price Analysis: XAU/USD bulls stay hopeful above $1,800 despite Wednesday’s spinning top
|- Gold prices recede from $1,813.40 after a three-day winning streak.
- Spinning top suggests traders’ indecision, can be clubbed with recent sluggish moves.
- Sustained trading beyond 10-day EMA, the monthly support line portrays bullion’s strength.
- The month-start top adds to the downside barrier, multiple resistances stand tall to guard further advances past-$1,800.
Gold prices ease from one week high to $1,810 amid early Thursday morning in Asia. The bullion marked consecutive third positive daily closing the previous day. However, sluggish moves portray a “Spinning Top” candlestick formation suggesting traders’ indecision. The pattern joins the quote’s recent failures to refresh monthly high in suggesting the underlying weakness of the bullish momentum.
As a result, the bears could seek fresh entries targeting $1,800-$1,798 support area comprising 10-day EMA and an upward sloping trend line from June 15. However, any further weakness by the yellow metal will divert the bears towards July 01 top near $1,789.
It should also be noted that the Gold price weakness past-$1,789 might not refrain from attacking the early-June peaks near $1,745.
On the contrary, the monthly top, also the multi-year high, around $1,818 acts as an immediate resistance, a break of which could escalate the bullion’s north-run towards August 30, 2011 peak surrounding $1,840.
Additionally, the precious metal’s ability to stay strong beyond $1,840 enables it to aim for the record high of $1,921 flashed during September 2011.
Gold daily chart
Trend: Pullback expected
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.