Depending on one’s timeframe, gold has either stalled or is gradually grinding higher. This is because gold has been moving sideways since mid-April but has been trending upward within a technical trading channel since mid-May. It has been a frustrating period for gold traders, with numerous false starts moving higher and lower. However, long-term holders certainly can’t complain.
The rising trading channel and the ascending 10-day exponential moving average are bullish signals, suggesting that gold could continue to climb if these trends remain intact. Additionally, the Relative Strength Index (RSI) is also trending upwards, further supporting a bullish outlook.
The significant test for gold remains at $3,400, an area where gold has repeatedly failed to break through. Yet, one could argue that the more gold tests this resistance level, the greater the likelihood of an eventual breakout.
However, should gold fail to break out and instead slip below the rising channel and the 10-day exponential moving average, it would create a bearish scenario, potentially pushing prices beneath support at around $3,325. Breaking this support could set the stage for declines towards $3,230, and possibly even down to $3,170, although current indicators suggest this scenario is less likely.
With geopolitical tensions escalating and economic uncertainty heightened by global trade concerns, gold is likely to remain an attractive safe-haven asset in the near term. Nevertheless, should these tensions ease or uncertainties diminish, gold may face a pullback; yet, for now, further upside appears to be the most probable outcome.
Written by Michael J. Kramer, founder of Mott Capital Management.
Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed.
No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction, or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.
The rising trading channel and the ascending 10-day exponential moving average are bullish signals, suggesting that gold could continue to climb if these trends remain intact. Additionally, the Relative Strength Index (RSI) is also trending upwards, further supporting a bullish outlook.
The significant test for gold remains at $3,400, an area where gold has repeatedly failed to break through. Yet, one could argue that the more gold tests this resistance level, the greater the likelihood of an eventual breakout.
However, should gold fail to break out and instead slip below the rising channel and the 10-day exponential moving average, it would create a bearish scenario, potentially pushing prices beneath support at around $3,325. Breaking this support could set the stage for declines towards $3,230, and possibly even down to $3,170, although current indicators suggest this scenario is less likely.
With geopolitical tensions escalating and economic uncertainty heightened by global trade concerns, gold is likely to remain an attractive safe-haven asset in the near term. Nevertheless, should these tensions ease or uncertainties diminish, gold may face a pullback; yet, for now, further upside appears to be the most probable outcome.
Written by Michael J. Kramer, founder of Mott Capital Management.
Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed.
No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction, or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.
Disclaimer
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.