Gold Price Analysis: XAU/USD bulls cheer immediate rising channel, aim for $1,753
Gold prices hold onto the previous day’s gains while taking the bids near $1,740.26 during the early Asian morning on Tuesday. The yellow metal portrays a short-term bullish chart formation on the hourly chart while also being above 200-HMA. As a result, the buyers are likely to keep the reins, which in turn could push the quote towards the said channel’s upper line, near $1,753.00.
In a case where the prices remain solid beyond $1,753, the previous month’s top near $1,765.40 could lure the bulls.
On the downside, the metals declines below the channel’s support of $1,730.60 will need validation from a 200-HMA level of $1,727.45. In doing so, the bullion sellers may target $1,710 ahead of aiming the May 27 bottom surrounding $1,694/93.
Speculators dump gold but price goes up anyway
Judging from futures and alleged jewelry demand, the price of gold ought to be falling. But it isn't. Let's explore what's happening with the price of gold and why. The above chart is courtesy of Barchart. The anecdotes are mine.
In the futures world, for every long there is a short. Contracts net to zero. The commercials are producers who sell their gold and the broker-dealers who are hedged.
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