Important Disclaimers The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. If it does, a test of the lower boundary and possible drop below it becomes more likely.įor a look at all of today’s economic events, check out our economic calendar. However, that could change today as gold is on track to close below the moving average at the time of this writing. In fact, there has not been one day yet where gold closed below the 100-Day EMA. Last week there was an early session spike below the 100-Day EMA that quickly found support and ended the day back above the 100-Day line. Daily Close Below 100-Day EMA a Sign of Weakening A little higher is the 61.8% Fibonacci retracement at 1,912.Īs noted previously, the expectation for gold is that it is in a retracement within a larger uptrend and that the advance of the uptrend will kick in once the retracement completes. The most significant being around the 200-Day EMA, now at 1,895. If the boundary is broken to the downside, then there are a couple potential support zones identified. Nevertheless, watch last week’s low of 1,925 for signs of support while keeping in mind potential support around the lower boundary of the pattern.
Volatility Likely to Stay Muted as Consolidation Pattern Expandsĭeclines should continue to be muted given that activity is happening within consolidation. Then, strength would be further confirmed on a move above last week’s high of 1,971, and then a daily close above that level. On the upside, although on a rally gold would rise above the line first, an advance above the recent swing high at 1,968 would provide a more reliable bullish signal. Given the current view it looks like gold could spend more time forming this consolidation pattern. Until then, it is reflecting the potential to break to the upside. A falling wedge is considered bullish, and it needs to break out before it is confirmed.
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