Gold, Chart of the Week: Bulls are moving in, but weekly levels are eyed
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CLAIM OFFER- Gold has been creeping in on the weekly target, but bulls are starting to move in.
- A period of consolidation could be on the cards if the bears do not commit below near to $1,820.
The price of gold deteriorated last week into the weekly support as forecasted in the pre-open analysis as follows:
Gold weekly charts
Prior analysis
Gold, live chart, pre-open
Gold daily charts
Prior analysis
Gold, live chart, pre-open
The price has closed below a critical structure around $1,820, so the focus is on the further downside for the week ahead. However, a correction could be in order to restest the old support before embarking on $1,780 and below.
Gold, H4 chart
The price on the four-hour time frame is problematic. The bears will hope for a commitment on a correction towards the prior day's close near 1,820 but the dojis are signifying that the bulls are moving in. A subsequent move above 1,830 will likely lead to a period of consolidation throughout the coming week above current lows.
Meanwhile, analysts at TD Securities explained that gold specs heavily reduced length, cutting longs and adding shorts heading into a highly anticipated US CPI print.
Indeed, the inflation data came in higher-than-expected. Despite a short-term bump, the yellow metal has since fallen victim to higher nominal and real rates, along with less liquidity due to QT. Sentiment is poor in precious metals, and elevated positioning analytics still argue for potential additional pain for gold bugs. Indeed, CTA trend followers have also joined the liquidation party, and with prices now below the bull-market-defining uptrend, a significant liquidation event may currently be unfolding.
- Gold has been creeping in on the weekly target, but bulls are starting to move in.
- A period of consolidation could be on the cards if the bears do not commit below near to $1,820.
The price of gold deteriorated last week into the weekly support as forecasted in the pre-open analysis as follows:
Gold weekly charts
Prior analysis
Gold, live chart, pre-open
Gold daily charts
Prior analysis
Gold, live chart, pre-open
The price has closed below a critical structure around $1,820, so the focus is on the further downside for the week ahead. However, a correction could be in order to restest the old support before embarking on $1,780 and below.
Gold, H4 chart
The price on the four-hour time frame is problematic. The bears will hope for a commitment on a correction towards the prior day's close near 1,820 but the dojis are signifying that the bulls are moving in. A subsequent move above 1,830 will likely lead to a period of consolidation throughout the coming week above current lows.
Meanwhile, analysts at TD Securities explained that gold specs heavily reduced length, cutting longs and adding shorts heading into a highly anticipated US CPI print.
Indeed, the inflation data came in higher-than-expected. Despite a short-term bump, the yellow metal has since fallen victim to higher nominal and real rates, along with less liquidity due to QT. Sentiment is poor in precious metals, and elevated positioning analytics still argue for potential additional pain for gold bugs. Indeed, CTA trend followers have also joined the liquidation party, and with prices now below the bull-market-defining uptrend, a significant liquidation event may currently be unfolding.
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