Gold Price Analysis: Bullish Momentum Continues to Build
Gold Price, News, Chart and Analysis
- Gold chart starting to look bullish.
- US dollar will be moved by a raft of heavyweight data and events next week.
The DailyFX Q3 Gold Forecast is now available to help traders navigate the market.
Gold Looking to Break Resistance as the US Dollar Weakens Further.
The precious metal is building a base above $1,200/oz. for the most of this week and is looking to push further ahead on the back of a weaker US dollar. The recent move has taken gold back above its 20- and 50-day moving average – a bullish signal – while the last five daily candles have all made higher lows. The RSI indicator is also pointing higher and has plenty of room to move before it enters overbought territory.
The next important level for gold is the 61.8% Fibonacci retracement at $1,215.4/oz. a level last seen six weeks ago. Above here there is a decent gap all the way back to the December 12 low at $1,236/oz. and the 50% Fibonacci level at $1,244/oz.
US Data and Events Calendar is Packed Next Week
Gold is currently benefitting from a weak US dollar, which has dropped to a two-month low on fears that the US economy may be starting to slow down. Data and events next week will give traders a much better idea about the state of the US economy and may well revive the dollar, to the detriment of gold.
The DailyFX Calendar gives you an in-depth look at all the major data and events with the latest expectations for all economic releases.
Gold Daily Price Chart (February - September 21, 2018)
The latest IG Retail Sentiment Indicatorshows that traders remain 87.3% net-long of the precious metal – normally a bearish contrarian sentiment indicator – but recent daily and weekly shifts currently give us a mixed gold trading bias.
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--- Written by Nick Cawley, Analyst
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.