Gold Price News and Forecast: XAU/USD rallies back to $1900 mark, lacks follow-through [Video]
|Gold: Near term rallies will struggle [Video]
Two decisive positive candlesticks have moved the outlook for gold back to a crucial crossroads. The old August/September lows between $1902/$1926 have left key medium term resistance. The rebound in the last couple of sessions has hit $1899 and begun to slip back. The configuration on momentum indicators suggests that near term rallies will struggle. As such we still prefer pressure towards the newly formed six month uptrend (today at $1856). Closing back under $1875 (yesterday’s low) would play into this outlook. The rally continuing to fade around the $1900 area suggests that the bulls are not ready to regain control. There needs to be a move back above $1926 at least (the 23.6% Fibonacci retracement of $1451/$2072) to even suggest momentum for a test of the now six week downtrend. Read More...
Gold Price Analysis: XAU/USD rallies back to $1900 mark, lacks follow-through
Gold attracted some dip-buying near 100-hour EMA and rallied back closer to the top end of its daily trading range during the early North American session. Bulls might now be looking to build on the momentum further beyond the key $1900 barrier.
The mentioned level marks a previous strong horizontal support breakpoint, which if cleared decisively might trigger some aggressive short-covering move. The XAU/USD might then accelerate the recovery momentum further towards the $1925 resistance zone. Read More...
Is gold’s latest recovery over?
XAU/USD traded lower on Wednesday, after it hit resistance at the 1900 zone. Overall the metal continues to trade below the 1910 barrier, which acted as the lower bound of the triangle that contained the price action from August 12th until September 21st, and thus, we see decent chances for the bears to take fully charge again soon.
A clear and decisive dip back below 1875, which is near the highs of last Thursday and Friday, may confirm that Monday’s and Tuesday’s recovery was just a corrective rebound and may encourage the bears to target Monday’s low, at around 1848. A break lower would confirm a forthcoming lower low and may set the stage for more declines, perhaps towards the 1815 zone, which provided strong resistance between July 8th and 17th. Read More...
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