Gold within Neutral belt / Resistance and Support intact

2022年4月12日

Gold's general commentary: Gold was pricing strong upswing, mostly above it’s Daily chart’s Resistance (Xau-Usd Spot prices Trading at #1,952.80), which Technically leans more to the Bullish side. Investors are waiting for core economic catalysts (Core CPI), besides today’s semi-Bullish session, as Bond Yields crisis arises and comfort Buyers in their intent, as Gold ignores Bond Yields movements for #6 consecutive sessions now. DX is Trading again on the same pattern started on March #28, creating High’s which are later Sold, which High’s can turn Gold Lower (especially since the equities are posting a strong rally), but that hasn't happened so far, leading me to believe that the DX weighs more on Gold than Bond Yields at the moment, and which one is main correlating asset is answer not easy to give. Hence, as discussed, keep track of the Bond Yields to make Short-term entries on Gold, as the Medium-term remains Bearish (solid Descending Channel on the Daily chart should form once Price-action kickstarts the correction).


Technical analysis: In my opinion, #1,952.80 is tested and aggressively invalidated on one hit and should deliver decent Buying entry towards #1,970.80 Resistance / however on the other side, #1,927.80 presents strong Support (far away) from current Bullish variance, and if broken, I won’t hesitate to pursue #1,900.80 barrier configuration or Lower. Fundamentally, Bond Yields are still on recovery candles, DX reversed and corrected latest peak / I cannot expect anything else than Buying continuation towards #1,970.80 Resistance, since market closed above #1,952.80 barrier. Gold is being kept above the Daily chart’s #MA50 despite the Higher High's peak on DX and continuous Low’s on equities. Besides the Low volume, Gold should test the Resistance zone, however no one cannot deny possible Selling pressure from both correlating assets (DX on Bullish candles and Bond Yields still on parabolic uptrend). Technically, Gold should already be near #1,970.80 final Resistance, ready to deliver #1,992.80 extension. Regardless of that, keeping the #1,947.80 - #1,943.80 Support zone intact is alone a positive development for Buyers ahead of the revelation of major move. Keep an eye on the Bond Yields when the U.S. opens throughout today’s session, in order to get a grasp of the Intra-day direction. As of now, I was ready to Buy Gold towards #1,970.80 extension (strong Resistance and possible rejection point), but both correlating assets are Trading on aggressive uptrends which may add Selling pressure on Gold any moment, invalidating my order. I will await Core CPI, High impact announcement and then make my move with more clarity.