GOLD TECHNICAL FORECAST – TALKING POINTS
XAUUSD rebounded over 1 p.c Friday to $1,300 after costs based mostly on the $1,285 stage earlier within the week
Gold’s long-term technical uptrend appears to be like set to renew as anti-risk fundamentals helps enhance the commodity greater as fears over slowing world development creep again into the market
New to buying and selling gold? Obtain our free Gold Forecast for complete perception from DailyFX analysts!
The worth of gold recovered a mere zero.four p.c during the last 5 days of buying and selling following the prior week’s carnage. XAUUSD seems to have discovered assist round $1,285 which strains up with the zero.618 Fibonacci retracement stage drawn from the latest excessive in February and low in November.
SPOT GOLD (XAUUSD) PRICE CHART: DAILY TIME FRAME (NOVEMBER 01, 2018 TO MARCH 08, 2019)
With Friday’s wholesome acquire, the long-term uptrend in gold may simply proceed as costs snap again in the direction of the 20-day shifting common. The shift within the RSI and MACD indicators again into sending bullish territory will doubtless solidify the case for gold’s ascent to renew.
Quite the opposite, the short-term downtrend may put additional stress on the valuable steel, particularly if spot costs fail to interrupt again above the psychological $1,300 resistance stage as previous technical assist turns into new resistance. As well as, the zero.786 Fibonacci retracement strains ranging from final month’s excessive right down to the August and November lows may function extra obstacles for additional XAUUSD upside. Alternatively, the world may very well be considered as potential upside targets for bulls.
SPOT GOLD (XAUUSD) PRICE CHART: 1-HOUR TIME FRAME (FEBRUARY 28, 2019 TO MARCH 08, 2019)
On the lookout for a elementary perspective on Gold? Take a look at the Weekly Gold Basic Forecast.
As gold stabilized on the zero.618 Fibonacci retracement stage, costs may start to wedge if the commodity doesn’t push greater above the newly fashioned downtrend line. If additional upside fails to return to fruition, heavy promoting stress may simply resume.
That being mentioned, elementary drivers will doubtless thwart a technical bias and decide the place XAUUSD strikes from right here. The slowing world development narrative seems to be re-entering the minds of merchants and traders which may bid up demand for gold given its anti-risk properties. Though, upside in gold may very well be materially restricted by a robust US Greenback reasserting its dominance.
– Written byWealthy Dvorak, Junior Analyst for DailyFX
– Observe on Twitter@RichDvorakFX
Take a look at our Training Heart for extra data on Forex Forecasts and Buying and selling Guides.
OTHER WEEKLY TECHNICAL FORECASTS ON OIL, USD, GBP, EUR, JPY, AUD AND NZD:
Australian Greenback Forecast – AUD/USD, AUD/NZD Downtrend Might Pause. AUD/JPY Targets New 2019 Low
Oil Forecast – Crude Oil Worth Falls From 2019 Excessive On Financial system Fears, US Greenback Power
British Pound Forecast – Charts Protecting Optimistic Bias
US Greenback Forecast – Greenback Merchants On Alert After EURUSD’s 1.1200 Slip Pushes DXY to Ceiling