Can Gold Revive Its Bullish Sentiment ?
The Gold metal advanced to cap at $1306.67 the previous week and yesterday declined to support at 1252.06. The precious metal is in an uptrend as indicated by the rising trend line. Moreover, we see that the Gold found support at the 20 Simple Moving Average and at the 38.2% Fibonacci retracement from 1166.6 to 1306.67, at 1252.06.
Looking on the calendar today we expect some news on US GDP were it might weaker than expected and that could revive the upside for the XAUUSD. Moreover, the recent decision of ECB to start QE program combined with expectation of RBA rate cut and RBNZ getting more dovish we could see inflation pressures underpinning Gold.
Looking at the oscillators, the Average Directional Index is well above the 25 line and the edge is still on bulls, the Stochastic is almost in oversold zone while the OsMA is falling. In our opinion, chances favor the maintenance of prices above the support at 1252.06 and upside could revive on lower GDP data for the US economy. Prices could head towards first resistance at 1227.04 ahead of the next resistance level at 1306.84
R1 - 1275.04
R2 - 1306.84
R3 - 1339.26
S1 - 1252.06
S2 - 1239.35
S3 - 1222.17
The Gold metal advanced to cap at $1306.67 the previous week and yesterday declined to support at 1252.06. The precious metal is in an uptrend as indicated by the rising trend line. Moreover, we see that the Gold found support at the 20 Simple Moving Average and at the 38.2% Fibonacci retracement from 1166.6 to 1306.67, at 1252.06.
Looking on the calendar today we expect some news on US GDP were it might weaker than expected and that could revive the upside for the XAUUSD. Moreover, the recent decision of ECB to start QE program combined with expectation of RBA rate cut and RBNZ getting more dovish we could see inflation pressures underpinning Gold.
Looking at the oscillators, the Average Directional Index is well above the 25 line and the edge is still on bulls, the Stochastic is almost in oversold zone while the OsMA is falling. In our opinion, chances favor the maintenance of prices above the support at 1252.06 and upside could revive on lower GDP data for the US economy. Prices could head towards first resistance at 1227.04 ahead of the next resistance level at 1306.84
R1 - 1275.04
R2 - 1306.84
R3 - 1339.26
S1 - 1252.06
S2 - 1239.35
S3 - 1222.17