Unclear path for gold

Almost two weeks ago, we touted gold’s retest of the support at $1,900 and the potential continuation lower to $1,875. However, soon after that, gold halted its decline slightly below $1,885 and reversed. Subsequently, it went above $1,920. For the most part, this move coincided with the relief in the stock market. Therefore, we remain on high alert and somewhat undecided about the next path for gold. Technicals on the daily time frame turned slightly bullish, with Stochastic and RSI pointing to the upside. But DM+ and DM- still suggest the presence of a downtrend, and MACD hovers in the bearish territory. To bolster a bullish case in the short term/medium term, we would like to see MACD break above the midpoint and RSI with Stochastic continue to develop bullish structures. Besides that, we want to see the stock market stabilizing (as we think the market weakness still threatens the higher price of gold). To summarize this short article, we are neutral in the short-term and medium-term and bullish in the long term. In accordance with that, we continue to wait for a better opportunity to buy gold.

Illustration 1.01
Illustration 1.01 shows the daily chart of XAUUSD and two simple moving averages that act as alternative resistance levels. In the next few days, we will observe their ability to stop the rising prices.

Technical analysis
Daily = Neutral/Slightly bullish
Weekly = Slightly bearish

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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.