TECHNICAL FORECAST OF WEEKLY PRICE WEEK – neutral
- The price of gold the week ended a week after a -1% drop on Friday was virtually flat
- XAU /USD has advanced four weeks to meet the key resistance challenge
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The price of gold gained momentum this week as the precious metal pulled -1% back on Friday after jumping 1% higher on Wednesday. XAU / USD has largely achieved a response diving real yields, although the technical landscape is likely to weigh gold as well. The demonstration, launched by gold bulls over the past four weeks, now appears to be effervescent as the resistance around the $ 1,835 price level comes into play.
XAU / USD – GOLD PRICE CARD: DAILY SCHEDULE (March 26 to July 16, 2021)
This technical barrier is reinforced by both the upper Bollinger bar and the 50- and 200-day moving averages. A market responsive to this area of technical resilience is likely to be encouraging for gold bears, although the precious metal will still tread water. psychologically important $ 1,800 level. XAU / USD price operations may fall lower to see the June low again if the $ 1,800 level is violated. On the other hand, repealing the nearby resistance is likely to open the door to a $ 1,900 handle.
XAU / USD – GOLD PRICE CARD: WEEKLY FRAMEWORK (NOVEMBER 2020 – JULY 2021)
All in all, I think Friday’s -1% drop could just be a healthy and modest relaxation of recent gains. As such, it is important to monitor the follow-up at the beginning of the coming week to determine whether the risk of major negative consequences is greater or whether the momentum can be picked up again. This means that technical support seems quite daunting and as discussed in my article Top Q3 Top Trading Idea, gold and silver price setbacks could provide attractive options for considering long-term exposure. This thesis is also technically supported by the broader upward trend, which extends to March 2020 and March 2021. Nevertheless, a significant deterioration in market sentiment may bring the lowest focus a year ago.
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