Gold Price News and Forecast: XAU/USD - signs of seller exhaustion but too early to call bull revival
|Gold Market : the Bob Dylan hedge ?
The gold markets appear to be putting on the Bob Dylan hedge sooner than I expected and "taking shelter from the Phase 2 storm." Gold is trading in a $1547.00-$1553.00 range so far and bids on! Unless we get a more on the nose type of surprise, like an explicit roadmap for a further rollback in tariffs strategic buying on dip should remain in place.
The current level of "P1 tariff rollback, is unlikely to provide enough US domestic economic punch to shift the Fed hawkish. But the one "buyer beware" for gold bulls would be in the event central banks in general turn less dovish amid risk-on sentiment. Until that unlikely pivot, gold should head higher over time.
Gold Price Analysis: Signs of seller exhaustion but too early to call bull revival
Gold is currently trading at $1,548 per Oz, having clocked a low of $1,536 on Tuesday. The long wick attached to Tuesday's candle indicates seller exhaustion, meaning the corrective pullback from the six-year high of $1,611 reached on Jan. 8 has likely ended.
Even so, it is too early to call a bull reversal, as the lower highs pattern is still intact on the 4-hour chart. A move above $1,563 is needed to invalidate the lower highs set up and confirm a bullish revival.
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