Back to Blog

Technical Analysis of Gold

Gold surged on Wednesday 22nd breaking out of the consolidation area 1.700-1.750, where it has been trading since 26th January. The yellow metal has been moving upwards since the beginning of the year and the consolidation could be seen as rest in a longer-term uptrend, with the recent break above 1.750 putting an end to the year profit taking. The spiking oil prices and the US dollar retreat pulled up the safety haven appeal of the precious metal and as more stimulus is coming the next week in the form of the ECB’s second LTRO investors are likely to turn to the anti-fiat asset in order to store value. Form a technical point of view the price broke above 1.762, the 61.8% Fibonacci level from September’s high to December’s low, opening the door for further upside movement towards the 1.800 and 1.850 area with previous resistance by 1750 acting as near term support and 1.700 as further support. With both the 20 EMA and the 50 EMA both holding above the 89SMA the bearish case seems highly unlikely. A downward movement below 1.714 however could call for 1.692 and 1.632.

Dafni Serdari
Market Analyst
Disclaimer
The comment in this blog is the personal opinion of the contributors and not Intertrader.com. The content does not constitute financial, investment or tax advice. You are advised to discuss your specific requirements with an independent financial adviser prior to entering into any bet. Intertrader.com is not responsible and disclaims any and all liability for the content of comments written by contributors to the blog, and the content of any third party sites linked from this blog.

Share this post

Back to Blog

Spread betting and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading these products with this provider.
You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money.