Gold Price Outlook Mired by Failed Run at 200-Day SMA

collected by :kiven Dixter

GOLD DAILY CHARTNear-term outlook for XAU/USD remains mired by the string of failed attempts to push back above the 200-Day ($1307) simple-moving average (SMA), with gold prices at risk of threatening the recent range as the Relative Strength Index (RSI) continues to track the bearish formation from earlier this year. For more in-depth analysis, check out the Q2 Forecast for GoldInterested in having a broader discussion on current market themes? Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups! Review the 'Traits of a Successful Trader' series on how to effectively use leverage along with other best practices that any trader can follow. --- Written by David Song, Currency AnalystFollow me on Twitter at @DavidJSong.

Gold Price Outlook Fails to Turn Bullish, Downside Resolution Possible

Talking Points:- Gold prices continue to consolidate around 1300, just below key resistance which overcome would signal a short-term bullish outlook. - Price is currently squeezing between the downtrend from the April 2018 high and the uptrend from the December 2016 and December 2017 lows. - Retail traders have become increasingly net-long Gold over the past week, suggesting that downside is more likely in the near-term. Gold Price: Daily Timeframe (December 2017 to June 2018) (Chart 2)Failure by Gold to reestablish itself through 1307.65 (mid-May swing high) suggests that the downtrend since the April (and 2018) high may not be over yet. US Treasury 10-year Yield: Daily Timeframe (August 2017 to June 2018) (Chart 3)The next directional move by US Treasury yields may contain the key to the Gold price outlook evolving beyond neutral.

Gold Price Outlook May Soon Turn Bullish

referring to Talking Points:- Gold prices have stabilized just above 1300 following a retest of the uptrend from the December 2016 and December 2017 lows. - Gold's break of the downtrend from the April 2018 high comes as US Treasury yields have fallen sharply in recent days. The combined effect of a weaker US Dollar alongside sliding US Treasury yields has proven to be a stabilizing catalyst for one asset class in particular: precious metals. Notably, Gold prices have attempted to halt their decline from their high in April, with the downtrend from April 11 on the precipice of breaking today. Gold Price: Daily Timeframe (November 2016 to May 2018) (Chart 1)The stabilization of Gold prices comes after the sharp decline from April saw price break the symmetrical triangle in place since January, bringing bullion back to the uptrend from the December 2016 and December 2017 lows.