Gold trades at overbought waters near 1,500 and key resistance
Gold returned to the 1,500 territory after almost two months following the breach of the 1,490 barrier, which is the 23.6% Fibonacci of the 1,266-1,566 uptrend.
The market is currently looking overbought as the RSI is flattening slightly above its 70 mark, the Stochastics are ready to complete a bearish cross above 80, and the price itself is trading around the upper Bollinger band.
A downside correction could retest the 1,500 round-level, where any violation would shift attention back to the 1,490 mark. Another leg lower may next find some footing around 1,470 and the upper line of the broken descending channel. If not, the sell-off could accelerate towards the 38.2% Fibonacci of 1,445, a break of which could bring the area between the 200-day simple moving average (SMA) and the 50% Fibonacci of 1,411 under the spotlight. Read more...
Gold Restarts Uptrend Ahead of New 2020 Decade
The XAU/USD (Gold) has broken above the key resistance trend lines (dotted), which indicates a potential restart of the previous strong uptrend.
Gold’s strong bullish price action could complete the bearish wave 4 (blue) correction at the 38.2% Fibonacci retracement level and indicate the start of the wave 5 (blue). A break above the next resistance trend line (red) could confirm (green check) the bullish continuation towards the Fibonacci targets of wave 5 vs 1+3. Read more...
Gold retreats from two-month highs, continues to trade above $1510
The XAU/USD pair gained more than $30 last week supported by the broad-based USD weakness and closed at $1511. With the poor performance of major Asian equity indexes and heightened geopolitical tensions in the Middle East, the pair stretched higher at the start of the week and renewed its best level in more than two months at $1515.90 before going into a consolidation phase. As of writing, the pair was up only 0.08% on the day at $1511.75.
Reports revealing US airstrikes against the Iranian-backed Kataib Hezbollah militia in Syria and Iraq over the weekend caused geopolitical tensions to escalate on Monday. According to Iranian state news agency IRNA, "US military aggression against Iraqi soil and Iraqi forces is strongly condemned as a clear example of terrorism," Iranian Foreign Ministry spokesman Abbas Mousavi said. Read more...
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD posts gain, yet dive below 0.6500 amid Aussie CPI, ahead of US GDP
The Aussie Dollar finished Wednesday’s session with decent gains of 0.15% against the US Dollar, yet it retreated from weekly highs of 0.6529, which it hit after a hotter-than-expected inflation report. As the Asian session begins, the AUD/USD trades around 0.6495.
USD/JPY finds its highest bids since 1990, approaches 156.00
USD/JPY broke into its highest chart territory since June of 1990 on Wednesday, peaking near 155.40 for the first time in 34 years as the Japanese Yen continues to tumble across the broad FX market.
Gold stays firm amid higher US yields as traders await US GDP data
Gold recovers from recent losses, buoyed by market interest despite a stronger US Dollar and higher US Treasury yields. De-escalation of Middle East tensions contributed to increased market stability, denting the appetite for Gold buying.
Ethereum suffers slight pullback, Hong Kong spot ETH ETFs to begin trading on April 30
Ethereum suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Dow Jones Industrial Average hesitates on Wednesday as markets wait for key US data
The DJIA stumbled on Wednesday, falling from recent highs near 38,550.00 as investors ease off of Tuesday’s risk appetite. The index recovered as US data continues to vex financial markets that remain overwhelmingly focused on rate cuts from the US Fed.