Gold Retreats From 5-Month Highs

Gold prices fell $5.41 an ounce on Monday as a rebound in the dollar prompted some investors to lock in gains from a recent rally to a five-month high. XAU/USD initially headed higher but was unable to pass through the resistance in the $1252-$1248 zone. As a result, prices broke below $1245.50 and visited the support at $1241 as anticipated.

XAU/USD is trading above the Ichimoku clouds on the daily and the 4-hourly charts, suggesting that the bulls have the overall near-term technical advantage. The Tenkan-Sen (nine-period moving average, red line) and the Kijun-Sen (twenty six-period moving average, green line) are positively aligned on both charts; plus, the Chikou-span (closing price plotted 26 periods behind, brown line) is above prices.

XAUUSD Daily

If the bulls can defend their camp in the 1241/0 zone, we will probably revisit 1252/48. A break above 1252 could foreshadow a move to 1261/0, which is the next solid resistance on the charts. The bears, on the other hand, have to pull prices back below the hourly cloud (1242.40) to gain momentum for a test of 1241/0. If XAU/USD drops below 1240, look for further downside with 1236 and 1233 (the top of the 4-hourly cloud) as targets.

XAUUSD h4

 

Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.