Key Points
- ATH in the overbought region
- Price above the $1850 resistance handle
- RSI pointing upwards
Gold Daily Chart
Gold bulls may finally be reclaiming their position in the driving seat after price displayed an impressive bullish recovery after striking the 200 Moving Average at the $1780 region. In early August, bulls were all over the precious metals market as Gold prices climbed to all-time-highs despite being in the overbought region. The $2,000 handle wasn’t strong enough to hinder the bullish momentum as long term fundamentals were in favour of the raging bulls. A bearish engulfing which proceeded the peak at $2079.84 brought down prices to the ascending channel and after a long period of consolidation with a bias on the downside, prices reached the 200 MA.
A strong bullish wave is now knocking at the monthly ascending channel around the $1850 – $1870 region. Prices consolidated for nearly 2 weeks in this region prior to the bearish breakout. Bulls might momentarily be stunned, but a retest of the $1850 support line will be all that’s needed to launch the trend into the long-term channel. The long-term fundamentals are inclined towards the bullish side as the optimism about a U.S. stimulus takes centre stage in the market. Quantitative Easing is creating extra liquidity in the financial markets, with the latest being the Bank of Japan’s stock ownership rising to a whopping $45.1 Trillion.
The recent upsurge in prices will likely be sustained since the Relative Strength Index is pointing upwards but still below the 50 region. The good news for the bulls is that is coming from the oversold region and yet to reach its previous turning point. This however, does not rule out the possibility bearish move since prices are faced with an ascending resistance line.
Trends
| Moving Average | Simple | Exponential |
| 60 | 1882.58 SELL | 1872.42 SELL |
| 100 | 1911.94 SELL | 1864.25 NEUTRAL |
| 200 | 1805.78 BUY | 1801.27 BUY |
Pivot Points (Daily)
| Name | S3 | S2 | S1 | Pivot | R1 | R2 | R3 |
| Gold | 1788.00 | 1806.40 | 1836.20 | 1854.60 | 1884.40 | 1902.80 | 1932.60 |
| Silver | 22.66 | 23.15 | 23.97 | 24.45 | 25.28 | 25.76 | 26.59 |
| Platinum | 955.59 | 984.92 | 1011.64 | 1040.97 | 1067.69 | 1097.02 | 1123.74 |
| Palladium | 2241.91 | 2276.58 | 2305.41 | 2340.08 | 2368.91 | 2403.58 | 2432.41 |
Pivot Points (Weekly)
| Name | S3 | S2 | S1 | Pivot | R1 | R2 | R3 |
| Gold | 1701.74 | 1734.47 | 1787.24 | 1819.97 | 1872.74 | 1908.47 | 1958.24 |
| Silver | 19.98 | 20.97 | 22.613 | 23.59 | 25.23 | 26.22 | 27.86 |
| Platinum | 850.74 | 903.57 | 987.04 | 1039.87 | 1123.34 | 1176.17 | 1259.64 |
| Palladium | 2035.10 | 2130.10 | 2242.55 | 2337.55 | 2450.00 | 2545.00 | 2657.45 |
Some truly superb articles on this web site, regards for contribution. “A liar should have a good memory.” by Quintilian. Kellina Mayne Arleta