Gold Price Forecast: XAU/USD current decline deems as a correction, bull trait remains intact – DBS Bank
Gold has given up gains off its recent march higher, to fetch a $2,070 high. Correction is the fancied assumption, according to Benjamin Wong, Strategists at DBS Bank, who maintains a bullish outlook while XAU/USD trades above the $1,850/16 area.
Gold fancies a decline towards a near-term head-and-shoulders bearish top’s target at $1,906
“On its weekly chart, gold’s inherent bull trait remains intact given the moving average convergence divergence (MACD) signal remains hoisted higher. However, there remains a watching vigil. The $2,075/70 peaks can turn out to be a double top should the price corrosion not be contained.”
“For now, at least from a weekly price perspective, gold remains bullish if it holds the $1,850/16 price zone. The former marks the drop from $1,992 at $1,850; trappings of a former neckline break and the latter hosts $1,816, a pivotal moving average level.”
“The move lower from $2,070 now takes the mould of a potential near head-and-shoulders top. This provides the backdrop for the corrective move to either motion towards the 61.8% retracement of the recent $2,070-$1,780 range grip measured at $1,891, or the head-and-shoulders pattern target calibrating $1,906.”
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FXStreet Insights Team
FXStreet
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