Trying the Upside in Gold, As Buyers Remain in Charge
Gold turned bullish on Friday as China signaled a reopening and we decided to buy the pullback lower earlier today
Gold has been bearish since March, but it has formed a bottom around $1,615 since late September, which has held as a support zone. On Friday last week though, we saw a really strong bounce as China gave signals that it wants to reopen after three years of coronavirus lockdowns. But, over the weekend we heard some denial of those rumours, hence the opening with a bearish ga for risk assets, including Gold which has lost its safe haven status.
Although, GOLD prices resumed the bullish momentum again earlier today and steadied eventually near a three-week peak that was reached last week, buoyed by a weaker dollar, while investors looked forward to U.S. inflation data later this week that could influence the size of Federal Reserve rate-hike.
Gold 15-min Chart – MAs Keeping Gold Bullish
The bearish gap was closed
The USD continues to remain weak as risk sentiment remains slightly positive, with stock markets opening a little higher today. The USD extended its losses to a more than one-week low, making Gold more attractive for other currency holders.
A while ago we saw a retrace lower, which stopped at the 100 SMA (green) on the daily chart. That was a good opportunity to go long here, so we opened a Gold signal at $1,677, which closed eventually at $1,680. This area used to be a strong support zone, so it might turn into resistance now and buyers are showing weakness around this zone, so we decided to close our Gold signal in profit just above $1,680.
Gold XAU Live Chart
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