Gold may try to drop again during this week, but the 1063 level could act as a temporary support. To the upside, the 55 day exponential moving average, which is currently at the 1120 level could act as resistance in case gold retraces to the upside. But the Dollar stays strong and as long as the greenback holds on to its gains, it would be difficult for gold to rally.
Hi fxstrategist,
interesting thinking, I exactly the other side of the equation. Although we agree that the main trend is down, looking at the COT Report we arrived to a short extreme and also price is at the weekly support level. It does not mean that you are not right and price cannot break down, but that support has been holding strong until now. How long an upside rally can be is hard to say as it is against the main trend. However the 55EMA is not looking too good and useful even on your chart (again, I am not saying it does not work, I only looked at your attached chart). There has not been any action there.
Time will tell, I wish you good trading with it,
FE
I’m waiting for the Fed announcement today since it might be a strong catalyst for the dollar and therefore gold.
Overall I am bullish on gold, cautiously bullish.
I have no idea… Gold is not the precious metal haven and world reserve that it used to be…
If the US Dollar acquires new safe haven status in a Fed hike + global risk aversion scenario
then who will want to invest in gold?
There is a lot that I do not know about gold…
and I am not really sure I would trust it, as its price fundamentals are not such a simple
supply-and-demand matter as, say, corn…
F
My opinion is to dollar cost average every month in gold/silver and build up over your lifetime.
Gold & silver have been used for thousands of years as money and has never be worthless like fiat currencies.
The 1046 level may be a good support again if it drops to that level, even though it is retracing, gold stays in a downtrend.