Crypto

Gold price reversal for June fails to push above 50-day simple moving average -by Ecork

Talking points about gold prices

Gold price is approaching the 50-day simple moving average ($1,793) as it extends a series of highs and lows from last week, but the precious metal may reverse price action from June if it fails to rise above the moving average.

Gold price reversal for June fails to push above 50-day simple moving average

The recent recovery in the gold price appears set to continue as US Treasury yields remain under pressure, and bullion may continue to correct the decline from the July high ($1814) as the risk of a US recession puts pressure on the Fed to execute. Less price hikes.

Source: CME

Speculation about a Fed policy shift may keep the price of gold afloat as the CME FedWatch tool now reflects a greater than 70% probability of a 50 basis point rate hike in September, and it remains to be seen if the president Jerome Powell And Co will adjust future guidance for monetary policy as the central bank is scheduled to release its updated Summary of Economic Outlook (SEP).

Until then, gold could see a bigger rebound as the FOMC appears to be on course to implement higher rates at a slower pace, but the advance from the yearly low ($1,681) could turn into a correction in the broader trend as the average continues ​The 50-day SMA ($1,793) is in reversal of a negative slope.

However, the recent price action raises the scope for further bullion advances as it extends a series of higher highs and lows from last week, but the price of gold may reverse the behavior from June if it fails to rise above the moving average.

daily gold price chart

gold price daily chart

source: Trading View

  • Gold price is approaching the 50-day SMA ($1793) after a reversal before March 2021 low ($1677)with the break/close overlapping Fibonacci around it $1,761 (78.6% expansion) to $1,771 (23.6% retracement) fetch $1,816 (61.8% expansion) on Radar.
  • However, gold may reverse the price action from June if it fails to rise above the moving average, and the lack of momentum to hold above Overlap of around $1,761 (78.6% expansion) to $1,771 (23.6% retracement) Bullion may push back towards $1,725 ​​(38.2% retracement).
  • In turn, the recovery of The yearly bottom $1,681 could turn into a correction in the broader direction Where the moving average continues to reflect a negative slope, moving down $1,725 ​​(38.2% retracement) fetch $1690 (61.8% retracement) to $1695 (61.8% expansion) Back on the radar.

— Written by David Song, Currency Strategist

Follow me on Twitter at @DavidJSong

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button