Can Gold Keep the Bullish Trend After Falling Below $1,800?
Gold turned bearish and fell below $1,800 yesterday after the positive US Q3 GDP revision, but MAs are still acting as support
Gold has been acting as a risk asset lately, surging higher in the last months as sentiment improves, while the USD which has remained the last safe haven turned bearish. Buyers pushed Gold up from the support zone at around $1,715-16, climbing above $1,820, which means gaining more than $200 since the first week of November.
The trend has slowed since the middle of November after the initial surge, but moving averages have been doing a great job as support, holding the price during pullbacks, particularly the 100 SMA (green) and to a certain degree the 50 SMA (yellow) as well.
Gold H4 Chart – Sellers Trying to Decide Above MAs
Is the retrace complete for XAU/USD?
Although yesterday we saw a strong bearish reversal after the strong US final Q3 GDP revision. We have been thinking about opening a long term buy GOLD signal at around $1,800 as central banks start to slow down with rate hikes, which has improved risk sentiment in recent months.
But, they’re still pressing for more rate hike, with the ECB vice president de Guindos pressing for 50 bps rate hikes now. The odds of the FED continuing with rate hikes also went up after yesterday’s higher GDP revision, so the sentiment turned negative.
Remarks by ECB Vice President, Luis de Guindos
Gold XAU Live Chart
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals