Gold: Bears are driving the car and in the mood of long drive
|Comex Gold
LTP: $2488
Daily chart of Comex Gold looks very weak and indicating bearish momentum. Gold turned down from $2531 level and moved down below $2500 which is a psychological pressure on bulls. The way bears are reacting on the chart we may announce for short term that gold has formed top and any buying above $2535 level with 4 hourly sustainability will change the outlook from bearish to bullish. It will be not an easy journey for bears also as they have to face many acid test/hurdles i.e. support level like $2453 and $2435 level.
From technical prospective we can see a rounding top pattern is in process of formation on H4 chart which suggest us to have a bearish view as long as 2530 level remains intact. Overall pair is trading below all the major and minor EMA lines. On daily chart parabolic top has formed. The 2435 level is only major hurdle for bears if we see panic selling below this level we may see selling around 2350 level, 2275 level and furthermore.
On fundamental prospective ADP Employment, ISM Service PMI, Jobless claim and NFP is in line in the week, keep an eye on the data. There are high chances that we may see selling pressure in the gold. Overcrowded long positioning could be the reason the commodity is not rising as expected. Sustaining below $2500 level i.e. psychological level is providing strength to the bears. Gold is falling despite risk sentiment turning negative following weak US Manufacturing data.
Gold H4 chart with RSI and Major Moving Average
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.