Gold Mining Index
Dollar Index Spot
Spot Gold remains steady and holding under fresh recovery high at $1276, posted on Tuesday. Long bullish daily candle that was formed after yesterday’s rally and probe above near-term congestion tops, generated bullish signal for further recovery. The notion is supported by daily 10 / 20 SMA’s that turned into bullish setup and return above 200SMA.
Gold holding above important resistance at 1272/73 is now bullish & as we wrote yesterday, a sustained break above 1276 is a buy signal targeting 1284/85 then strong resistance at 1292/94. Failure to hold above 1270 however would be more confusing & risks a slide to 1267. This is the last line of defence for bulls. A break below 1264 kills the buy signal & targets 1260/59 then 1255/5
OK....lets look at Gold now...we saw the break lower to 1241...just below the 1247 38.2 longer term Fib...but also trendline support from the weekly charts....So although Gold looked like it was in freefall and actually moved 130 $ there were buyers in the madness and this shone through as the market held specific technical levels...Now the other point to note is trends...Gold has been in a downtrend since 2011.....and the move from 1045 to 1375 failed to breach the long term monthly 38.2 Fib which was located at 1380....are you confused yet...My point is...
XAUUSD, Time Frame H4. Indicator signals: Tenkan-Sen and Kijun-Sen are intersecting above Kumo Cloud again and forming "Golden Cross" (1); but the lines are getting closer to each other. D Tenkan-Sen and D Kijun-Sen are still influenced by D "Dead Cross" (3). Ichimoku Cloud is moving upwards (2), Chinkou Lagging Span is above the chart, and the price is moving above Kumo towards D Kijun-Sen. Short‑term forecast: we can expect support from Tenkan-Sen – Kijun-Sen, and growth of the price.