Gold Bounces Above $2,400 After the Crash Stops at 50 Daily SMA
On Friday, Gold nearly reached its all-time high from July, but reversed and fell below $2,400 today, however the 50 SMA stopped the fall.
On Friday, Gold nearly reached its all-time high from last month, but reversed and fell below $2,400 today, however the 50 daily SMA stopped the fall. The surge in July was driven by a shift to risk aversion as the U.S. economic outlook dims. This spike was not merely a reaction to worsening economic prospects around the world, but also to rising geopolitical tensions in the Middle East, which have historically boosted Gold’s allure as a safe haven. However, gold tends to perform well during bad times, but not when the situation becomes extremely dire, as evidenced in the last two trading days.
Gold Chart Daily – Diving Below $2,400 After Two Doji Candlesticks
Bearish Gold Reversal
During the US session, gold couldn’t maintain its gains and reversed lower, closing the day down. Today, GOLD held up during the Asian and European sessions before cracking lower in the US session, aligning with the continued drop in stocks from last Friday. It fell almost $80 to a low of $2,364.30, or 3% lower for the day.
Silver plummeted further, losing around 7% in an even greater bearish swing, at a time when stock markets were also crashing. Although both safe-haven metals are rebounding after finding support. This type of price behavior is common with gold, as it serves as a reliable safe haven until things become really terrible. At this stage, people are selling everything and hunting for liquidity wherever they can find it.
But the bounce off the 50 SMA is encouraging to Gold buyers. The retreat stopped right at the 50 SMA (yellow) on the daily chart, which held s support at the end of July as well. This is a positive sign, as Gold buyers are stepping in earlier, and the bounce is also a positive sign, with XAU claiming back more than $50 in no time, pushing the price above $2,400.
Gold Live Chart
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