Gold - The market's weakness weighs on gold
In our last idea, we outlaid how we grew increasingly bearish on gold in the short term while maintaining a bullish stance in the long term. We stated that our short-term view was influenced mainly by fundamental factors, which will continue to weigh on the global economy and lead to further weakness in the stock market. Furthermore, we also said that gold would likely drop toward the 1600 USD price tag in such a scenario.
Since then, gold has dropped to the vicinity of 1650 USD and confirmed our bearish worries. Because of that, we still stick to the bearish short-term narrative. Accordingly, we will pay close attention to the FED meeting, which will likely impact the price of gold and the stock market. We will update our thoughts before the meeting.
Illustration 1.01
The daily chart of XAUUSD shows two simple moving averages, 20-day SMA and 50-SMA, which are in a bearish position.
Technical analysis - daily time frame
RSI, MACD, and Stochastic are all bearish. The same applies to DM+ and DM-. Overall, the daily time frame is bearish.
Illustration 1.02
Illustration 1.02 shows XAUUSD in the downward sloping channel. The upper bound acts as the resistance, and the lower bound acts as the support.
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Since then, gold has dropped to the vicinity of 1650 USD and confirmed our bearish worries. Because of that, we still stick to the bearish short-term narrative. Accordingly, we will pay close attention to the FED meeting, which will likely impact the price of gold and the stock market. We will update our thoughts before the meeting.
Illustration 1.01
The daily chart of XAUUSD shows two simple moving averages, 20-day SMA and 50-SMA, which are in a bearish position.
Technical analysis - daily time frame
RSI, MACD, and Stochastic are all bearish. The same applies to DM+ and DM-. Overall, the daily time frame is bearish.
Illustration 1.02
Illustration 1.02 shows XAUUSD in the downward sloping channel. The upper bound acts as the resistance, and the lower bound acts as the support.
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
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