XAU/USD’s Upside Momentum Increases

Russell Shor, CFTe, MFTA FXCM

The below is the daily chart of the XAUUSD. Further to our previous article, the precious metal’s momentum has increased. Its EMAs are in a bullish stack and are starting to show angle and separation again. The RSI(9) is above 50 and indicative of an underlying bullish momentum (blue rectangle). We were of the opinion that gold’s momentum was waning but the poor German GDP print, the abysmal US retail number and Chinese CPI miss have reignited the demand for the safe haven. We note the overhead resistance around the $1,325 level (red shaded horizontal). A break above this level will be regarded as a bullish development for the precious metal.

Author

Russell Shor, CFTe, MFTA

FXCM

Russell Shor (MSTA, CFTe, MFTA) has an Honours Degree in Economics from the University of South Africa and holds the coveted Certified Financial Technician and Master of Financial Technical Analysis qualifications from the Interna

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