Gold Price Consolidates Further, Chart Remains Positive
Gold (XAU) Price, News and Chart:
- Gold slips as market grab a risk-on bid.
- Higher highs and lows dominate the Gold chart.
Gold’s sell-off from Wednesday’s 10-month high remains intact as financial markets continue to trade with a risk-on bias, boosted by US-China trade hopes, while a resilient US dollar weighs on the precious metal. The mid-week sell-off may have room to extend further but the Gold chart remains positive and is likely to find support shortly before it prepares to make a fresh attempt at the January 2018 high at $1,366/oz.
Gold is currently heading towards its weekly low around $1,320/oz. although today’s price action is muted. The medium-term outlook for Gold remains positive with a series of higher highs and higher lows confirming the upward trend. The RSI indicator has reversed out of overbought territory, as it has done twice before this year, but sentiment remains positive. Below this week’s low, the 20-day moving average may provide support around $1,318/oz. ahead of the current monthly low around $1,302/oz. If the pattern of moving higher, becoming overbought and then consolidating repeats itself for a third time this year, the latest downturn in the precious metal may prove to be short-lived.
Gold Daily Price Chart (May 2018 – February 22, 2019)
Retail traders are 69.2% net-long Gold according to the latest IC Client Sentiment Data, a bearish contrarian indicator. Recent changes in daily and weekly sentiment however give us a mixed trading bias.
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