3/7/2023 0 Comments Ralli link it![]() Here also begins the well-known resistance zone between $1,750 and $1,785 USD. Around $1,755 to $1,760 USD, an older downtrend line is waiting. However, the way up is paved with strong resistances. Exactly here would also wait the 38.2% retracement of the entire wave down since March, which typically represents the minimum target of a countertrend move.Īll in all, the daily chart has been bullish for a week now and still provides a buy signal. Now, the falling 200-day moving average ($1,842 USD) will act as a magnet and likely attract prices towards approx. This confirms our assumption that the bottom is in, and that gold has started some form of a recovery, at least. Since the low at $1,681 USD, gold is up more than $70 USD. On the daily chart, the trend reversal is clearly visible. Gold in US-Dollars, daily chart as of July 28th, 2022. If this is indeed a sustainable bottom, a bounce or even a strong recovery should make up quite some ground in the coming two to three months. But a stabilization is definitely succeeding. A clear trend reversal is not yet present. Overall, the weekly chart is still in a downtrend. However, there is no clear "buying signal" yet from the weekly oscillator. The oscillator has a lot of room for a strong rally lasting several weeks to several months. On top, the strongly oversold stochastic oscillator looks pretty promising. And judging from a candlestick perspective, those last two green candles signaling a reversal. Only here, at the triple bottom ($1,678 USD) from last year, gold bulls managed to stabilize the price action. Finally, prices even dropped slightly below the upper edge of the flat uptrend channel established since August 2018 (in green). On the weekly chart, gold corrected mercilessly over the last three and a half months. Gold in US-Dollars, weekly chart as of July 28th, 2022. Weekly Chart - At the upper edge of the 4-year uptrend channel This could very likely develop into the typical summer rally over the coming one to three months, at least. ![]() Hence, yesterday's FOMC meeting seems to have amplified a wave of short covering in the gold market. After all, however, gold was able to recover quite impulsively over the last week and touched $1,750 USD this morning. Rather did gold ( XAUUSD:CUR), the SPDR Gold Trust ETF ( GLD), the iShares Gold Trust ETF ( IAU) as well as the Sprott Physical Gold Trust ( PHYS) and Silver ( XAGUSD:CUR), the iShares Silver Trust ETF ( SLV) as well as the Sprott Physical Silver Trust ( PSLV) opt for our alternative scenario, which was a further price slide. The " summer doldrums" we had hoped for have therefore not materialized this year. More and more investors plagued by the stock and crypto crash were thus forced to sell their physical precious metal holdings in order to access much needed liquidity. monetary policy, as well as high inflation data and collapsing stock & crypto markets, and thus a rampant recession, were primarily responsible for this selling pressure and the nasty downward spiral, which unfolded in the gold market. (Tradingview)īesides the clearly overbought situation and the euphoric sentiment in March combined with the fact that precious metals are already within a correction since August 2020, the toxic mix of interest rate hikes & quantitative tightening of U.S. Gold in USD, 4-hour chart as of July 28th, 2022. Thus, gold has lost almost $400 USD or 18.8% in a rather short period of time. The final low of this wave down has been seen on Thursday, 21st of July, at $1,681 USD. ![]() Gold prices reached an important high on March 8th, 2022, at around $2,070 USD and have since then slid into a brutal sell-off over the course of the last three and a half months. Now, after a bloodbath of almost $400 USD in the gold market, last week's reversal looks promising. Stock market and crypto investors have been suffering since November 2021 already, though. It's been three and half tough months for gold and silver investors.
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