RLinda ! GOLD-> Active bulls rule. What's next?

2022年11月11日

Gold prices rose Friday to their biggest weekly gain in more than two years. Gold is trading between $1765 and $1760. Data out of the U.S. showing inflation slowing boosted hopes that the Federal Reserve would slow aggressive rate hikes, which actively influenced bulls' motivation to increase their positions.


(Chart 1. Correlation of Key Instruments (Dollar Index, Government Bonds, Gold Price))

• Dollar Index breaks support and seeks toward the August 2022 low of $104,636
  
• The DXY dollar index fell 0.3 percent and headed for its biggest weekly drop since March 2020.
  
• 10-Year Treasury Bonds.
  
• Gold is renewing its highs in the last five weeks.
  

Softer-than-expected consumer price index data supports speculation that the pace of rate hikes at the Fed's December meeting may lead to a renewed downward trend in the dollar, providing gold with a window for a soft recovery

If market euphoria continues, gold prices could climb much higher and reach the $1800-$1880 range in the near term


(Chart 2. Technical indicators and shop action on the daily gold chart)

From a technical analysis point of view, we see a test of 1765 resistance on the derivation. I assume a pullback for consolidation is possible. The target for a pullback is support 1727. The medium-term target for long positions is resistance 1765. 1807

Technical indicators:

• Gold seeks to renew global highs. The price breaks the downtrend. We are waiting for confirmation on the chart. Ahead of the target is 1807.
  
• Volumes on the daily chart are minimal.
  
• Daily RSI is trading above the neutral 50 line and heading into overbought zone, the mood is still bullish
  
• The daily MACD shows a move into the upper zone of the histogram and demonstrates an acceleration of the bullish trend.
  

Regards to R. Linda!