Jul 09 2018

Gold(XAUUSD):- Is it the bottom?

Gold’s continued weakness and an expected turnaround from the lows captured the weekly price action. Gold slid to its lowest point of 2018 but recovered sharply from the lows gaining about $20 for the week. This price movement created a double bottom and also respected the weekly trendline support which is a bullish sign and thus a reversal in the trend. Gold’s reversal from lows speaks for itself about the change in the trend and should also take ques from a falling dollar which may help the price move upward faster than expected. Gold ended the week up $3.02 at $1254.45 an ounce, breaking a three-week losing streak, finally it was a bullish week, and bulls can continue this momentum in the coming days/weeks as price action suggests a reversal in the trend. Yellow metal is trading in an ascending triangle pattern on weekly charts, took support around the same and is also trading within 377 day SMA at 1363 and 200 Day SMA at 1234. Initially a level of 1280 can be targeted, a close above the same is likely to take gold towards 50 Day SMA at 1301.