Golden Breakout: Potential for 1,486 for spot gold

  • We upgrade our neutral conviction on GOLD, mentioned in our prior post, to buy.
  • Yesterday saw a solid 1.3% rise in XAUUSD on the back of a weaker USD, Middle East tensions and Ray Dalio comments.
  • The precious metal broke above key 1,438.63 resistance and a consolidation pattern. A close near the top reinforces bull sentiment.
    • 1,438.63 is now acting as support to price and a failure to close below could be detrimental for bears.
  • A pennant pattern has broken out and targets  1,537.11 (MPO calculated from 11-25th June rally)
    • The downtrend line of the pennant pattern may offer buying opportunities if the 1,438.63 support were to be violated intraday.
  • If the pattern is seen as a symmetrical triangle, then its MPO is at 1,486.85.
  • First major resistance comes in at 1,483.07. This is the 50% retracement of the 2011-2015 selloff.
  • Trending and momentum setups reinforce the upside. 200/50/21-Day EMA’s are trending northbound and reside at 1,309.35, 1,369.53 & 1,405.06 respectively.
    • MACD remains above zero and is touching. A bullish cross would reinforce further bullish potential.
Gold Chart

Akif Din


Akif SH. Din MSTA, CFTe, 2018 Bronwen Wood Memorial Prize Winner, has a solid understanding of global markets, fundamental analysis as well as having a vast amount of knowledge in technical analysi...continued

Comments on this analysis

Your email address will not be published. Required fields are marked *

Latest Related News

Gold & Silver Forecast

Recap Gold trades sideways holding minor resistance at 1493/94 before a slide to very minor support at 1488/87 but we held the next target of 1482/81. Silver beat key resistance at 1750/60 for a buy signal but we just missed the 1790 target. Daily Forecast - 22 October 2019 Gold first resistance at 1488/91 but above here targets 1498/1500. Bulls need a break above 1505… Continued

Gold: It’s All About Real Rates Not the Dollar

The Federal Reserve’s recent need to supply $100’s of billions in new credit for the overnight repo market underscores the condition of dollar scarcity in the global financial system. This dearth of dollars and its concomitant strength has left most market watchers baffled. Since 2008, the Fed has printed $3.8 trillion (with a “T”) of new dollars in an effort to weaken the currency and… Continued

Will Risk-off Continue? Elliott Wave on GOLD and SP500

Gold and silver are moving higher after another weak US data; weakest ISM non-manufacturing report in 3 years! We see them breaking to the high of the day, but it can be fifth wave moving into Elliott Wave channel resistance so market may start slowing down in the very near term, but only for a temporary set-back before bulls takes the price even higher. GOLD,… Continued

Copper Continues To Drop Towards Key L/T Fibo

Copper Futures continue to decline to its lowest since Q2 2017 as a grim global outlook persists and fading prospects of a de-escalation of the U.S.-China trade spat hits sentiment.USD strength is also weighing on Copper as a stronger dollar pushes down dollar-denominated commodities.Market sustains negative angle of attack as it drops through and holds below the 2.5495 support. We mentioned in our prior post we have scope… Continued

Correction Continues

Last week’s 800-point drop in the Dow Jones Industrials made it clear that we are in an extended, ongoing correction. Despite a strong rally at the end of the week which is most likely a counter-trend rally, we should not see the end of the corrective process until the middle of next month.  The fact that relatively minor cycles have had a big impact on… Continued

Forex Brokers in your location