Gold Price Hit 5-Week High

Gold price ended Tuesday’s session up $7.63 an ounce as rising volatility in global equity markets and falling U.S. Treasury yields bolstered demand for gold. The precious metal also benefited from an improved technical outlook. XAU/USD reached the $1241-$1240 area as anticipated after prices climbed above the $1236 level.

The bulls have the near-term technical advantage, with the market trading above the Ichimoku clouds on the daily and the 4-hourly charts. The Tenkan-Sen (nine-period moving average, red line) and the Kijun-Sen (twenty six-period moving average, green line) are positively aligned; plus, the Chikou-span (closing price plotted 26 periods behind, brown line) is above prices. However, having been rejected at 1241 makes me think that XAU/USD is heading back to 1233.80. If this intra-day support is broken, then the 1232.60-1231.50 area will be the next stop. Below there, the 1230/29 zone stands out as a strategic support and the bears have to push prices below 1229 to challenge 1226/5, the daily Tenkan-Sen.

(Click on image to enlarge)


The bulls, on the other hand, need to convincingly lift prices above 1241/0 to set sail for 1245.50. A break above 1245.50 indicates that the market is getting ready to test a key technical resistance in 1252/48. Closing above 1252 on a daily basis could trigger a push up to 1261/0.

(Click on image to enlarge)


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 ...

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


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