Selling the Retrace in Gold Again Today at the 50 SMA - Forex News by FX Leaders
Gold surged higher again yesterday as risk sentiment improved

Selling the Retrace in Gold Again Today at the 50 SMA

Posted Wednesday, September 28, 2022 by
Skerdian Meta • 2 min read

Gold has been really bearish since the reversal above $2,000 back in June and retraces higher have failed, presenting decent opportunities to sell Gold. Moving averages have been providing resistance at the top, so we have been using them to open sell Gold signals.

Early today we saw Gold make another low as prices fell to their lowest level since April 2020, with a rally in the USD and US Treasury yields on prospects of more aggressive rate hikes by the FED diminished the Gold appeal. The main factor really is the strength of the dollar, which has been supported by the ongoing FED narrative that they will do whatever it takes to bring down inflation.

Gold H4 Chart – Can the 50 SMA Hold As Resistance?

The 50 SMA provided resistance last week

Spot Gold was down around 0.5% at $1,615.12 per ounce this morning, edging closer to a 2-year low of $1,620.20 touched earlier this week. Although we saw a sudden reversal in the last several hours as the USD retreated lower. We haven’t heard any news to prompt such a move, but the sentiment has improved and stock markets are making some gains after enduring heavy losses in the last two weeks.

Gold has been acting as a risk asset now, after losing its safe haven status, so the improved sentiment is helping it. Although we decided to open a sell Gold signal just below the 50 SMA (yellow) on the H4 chart. This moving average did a good job in providing resistance and pushing GOLD lower last week, while today the surge has stalled right at this moving average. So we decided to sell Gold, hoping for another rejection at the 50 SMA after such a strong move. We see that there is selling pressure above $1,650, which is a positive sign for us.

Gold XAU Live Chart

GOLD
Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments