Gold (XAU/USD) Weekly Forecast: Bullish
- Gold Holds Up as USD Catches Two Days of Auctions
- Gold volatility persists as market risk rises (US banks, debt ceiling unresolved)
- Technical levels to watch next week as short-term bearish move contradicts long-term bullish trend
- In this article’s analysis, chart pattern and the key support and resistance level. See our comprehensive information for more information. education library
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Gold Holds Strong as USD Hits Two Days of Auctions
Gold prices have fallen since hitting a year-to-date high last Thursday, and precious metals have not sold on the same scale despite a fairly impressive recovery in the US dollar (DXY). The long-term inflation portion of the University of Michigan’s Consumer Confidence Survey revealed the hottest numbers since 2011, based on yesterday’s remarkable rise in the dollar index. However, he argues that recent gold selling is likely to turn into a runaway market, given gold’s appeal as a safe-haven asset amid renewed US regional bank concerns and the US debt ceiling stalemate. hard to do. Therefore, the outlook for gold next week is bullish. Especially since the prospect of continued bullishness at new low levels is likely to attract gold bulls.
Gold prices fall as dollar rises
Source: TradingView, Author Richard Snow
Increased gold volatility due to greater market risk
The graph below shows two tension periods. First in March, the depth and impact of a full-blown banking crisis was unclear, and more recently, in May, more banking anxiety (focused on US regional banks) once emerged. more. Gold’s volatility has more upward movement than downward movement. Therefore, a bullish outlook for gold remains realistic as long as volatility levels are high.
Money volatility index (GVZ)
Source: TradingView, Author Richard Snow
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Gold (XAU/USD) Technical Analysis
After hitting a record high, the gold price fell back and has been on a downward trend since then.Despite Recent Bearish Trends, Gold Price Continues to Support Above $2000 psychological level. Heading into the weekend, gold prices appear to be holding firm so far despite the dollar’s significant gains in two days.
A downtrend line works like this: Resistance is currently separating short-term directional moves from long-term bullish trends. Therefore, a breakout of such resistance next week portends continued bullishness. On the other hand, positive news over the weekend or sometime next week around the looming US debt ceiling deadline could extend the short-term bear market to levels below $2,000. The bullish outlook remains constructive as long as the price closes above $2,000.
gold daily chart
Source: TradingView, author Richard Snow
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— Written by Richard Snow for DailyFX.com
Contact and follow Richard on Twitter: @Richard Snow
