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GOLD traded in a strange fashion this week, as it opened a lot lower after the referendum result. However, later it managed to spike higher and not only closed the gap but also registered a new high. The price of yellow metal even managed to close above the 100 and 200 hourly moving averages, which can be considered a positive sign. Recently, GOLD broke an important resistance, which has again opened the doors for further upside acceleration in the short term. There are a lot of releases lined up during the coming sessions, which might cause a lot of moves in GOLD and the US dollar.
There was a bearish trend line formed on the hourly chart of GOLD, which was breached recently. GOLD bounced perfectly from an important confluence of 100 and 200 hourly moving averages. It has even managed to close above the 23.6% fib retracement level of the last leg from the $1221 high to $1191 low. So, there is a chance that GOLD might continue heading towards the 50% fib retracement level, which can be seen as a hurdle for GOLD buyers. A break above the same might call for a retest of the last high of $1221. The hourly RSI is also above the 50 mark, which is a positive sign and could encourage buyers in the near term.
On the downside, the 100 and 200 hourly moving averages might continue to act as a support for GOLD. A break below the same might turn the bias to bearish moving ahead.
Overall, one might consider buying dips around the 100 MA as long as the GOLD is trading above the last low of $1190.
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Posted By IKOFX Technical Team: Online Forex Broker
Website – http://ikofx.com/
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