Markets

Gold Spooked at 1530 after Completing 61.8% Retracement

Simple Moving Average (SMA) 200-period (bold, gray)

RSI-14 with Simple Moving Average 5-period of RSI attached.

Fibonacci Study

Elliott Wave Principles

Market and Price Action (patterns, candlesticks)

Intraday pivots and Intermediate-term support and resistance

Multiple Time-frame Analysis

Gold Crawling Towards Resistance at 1526.50 (5/24)

Gold (XAU/USD)

Short-Term to Medium Term

- In the 1H chart, we see gold sliding sharply from 1531 , and cracking a pivot just below 1520 . Now, a 50% retracement targets the 1500 level.

- The RSI is tagging 30 reflecting bearish momentum. In a pullback, the market should not push the RSI reading above 60, if it is to maintain the bearish momentum.

- The 4H chart shows the market turning after a slow crawl towards the 61.8% retracement level and a pivot at 1530 . The RSI shows that the market is bullish in the short-term, reflecting a medium term ranging mode.

- In the very short-term we are resolving overbought conditions seen in the 4H RSI. The 1500 pivot is indeed important. If the current decline is supported above 1500 , we can be developing a bullish attempt towards 1575 . A break below that extends the correction , and returns the bearish bias in the short-term.

- A break in the 4H RSI below 40 breaks the bullish momentum, and suggests this short-term bearish scenario, with 1470 as the first bearish target.

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Fan Yang CMT

Chief Technical Strategist

FXTimes

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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