Over the last five trading sessions, the price of the precious metal has recovered more than 3% as uncertainty surrounding the new 25% tariffs on countries like Mexico and Canada remains constant. In the past two sessions, the price has maintained steady neutrality as the market awaits the release of the U.S. NFP data tomorrow. Initially, expectations point to an increase of 159K new jobs compared to the 143K reported in the previous release.
Upward Channel: Since late December 2024, gold has attempted to sustain a short-term upward channel, which saw a breakout last week around the $2,850 per ounce price zone. However, in recent sessions, the price has re-entered the bullish formation and continues to show slight buying momentum, keeping the channel intact for now.
MACD: Currently, the histogram remains oscillating below the neutral 0 line, but an increasingly bullish outlook has started to emerge. As long as the MACD histogram does not consistently diverge further from the neutral line, the selling pressure from previous sessions could gradually weaken, reinforcing a potential bullish perspective on the chart.
Key Levels:
By Julian Pineda, CFA – Market Analyst
Upward Channel: Since late December 2024, gold has attempted to sustain a short-term upward channel, which saw a breakout last week around the $2,850 per ounce price zone. However, in recent sessions, the price has re-entered the bullish formation and continues to show slight buying momentum, keeping the channel intact for now.
MACD: Currently, the histogram remains oscillating below the neutral 0 line, but an increasingly bullish outlook has started to emerge. As long as the MACD histogram does not consistently diverge further from the neutral line, the selling pressure from previous sessions could gradually weaken, reinforcing a potential bullish perspective on the chart.
Key Levels:
- $3K: A tentative resistance level, situated in a price zone that gold has never reached in its history. Sustained buying momentum reaching this level could reinforce the bullish bias and further strengthen the current upward channel.
- $2.9K: A nearby support level, located at the lower boundary of the current bullish channel. Persistent selling pressure below this level could reinforce the bearish bias and pose a threat to the current upward trend.
- $2.7K: A definitive support level, positioned at the 50-period simple moving average. Price fluctuations reaching this level could trigger a new sideways movement in the short term and eliminate the clarity of the current bullish direction.
By Julian Pineda, CFA – Market Analyst
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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.