as declared in Gold's corrective rally gathered steam on Monda, but bearish moving averages (MA) are playing spoilsport. The hard currency seems to have bottomed out at $1,238 (July 3 low), but the descending (bearish) 5-week and 10-week MAs are complicating price recovery. Further, the 50-hour MA, 100-hour MA and 200-hour MA located one above the other, indicating the path of least resistance is on the higher side. Daily chartClearly, the odds are stacked in favor of a stronger corrective rally, however, the descending 5-week MA is proving a tough nut to crack. Weekly chartThe metal's failure to hold on to gains above the descending 5-week MA has only bolstered the bearish view put forward by the descending (bearish) 5-week MA and 10-week MA and has weakened the case for a stronger corrective rally.
collected by :kiven Dixter
Gold Price Forecast: Divergence of RSI on 4H chart noted, long-term bear bias intact
Gold's corrective rally could gather pace next week, as indicated by the bullish RSI divergence seen in the 4-hour chart. The yellow metal could pick up a bid next week as suggested by the bullish divergence of the relative strength index (RSI) seen in the 4-hour chart below. Further, the 14-day RSI is also showing oversold conditions, as seen in the daily chart below. While the RSI divergence favors a corrective rally, the long-term charts continue to call a drop to key support zone of $1,240-$1,230. ViewShort-term outlook (4-hour chart): Corrective rally could be in the offing, but will likely have a tough time capitalizing on the break above the descending 10-day MA.Gold Price Forecast: Stronger corrective rally likely
as mentioned in Short-term bullish reversal signs are seen in the gold daily and weekly chart. Weekly chartCurrently, gold is reporting marginal week-on-week gains at $1,255, having clocked a high and low of $1,261 and $1,238 earlier this week. That said, the daily chart indicates the metal is more likely than not to close above $1,261 next week. ViewThe metal could see a stronger rally towards $1,270 next week and could close above $1,261 next Friday, confirming a bull reversal on the weekly chart. On the downside, acceptance below $1,238 (Tuesday's low) would kill the probability of a stronger corrective rally and would shift risk in favor of a drop towards $1,200.Gold Price Forecast: Bearish bias intact, but 'death cross' confirmation could yield minor corrective rally
The gold daily chart shows death cross - a bearish crossover between the 50-day and 200-day moving average (MA) - which is often used as a contrarian technique for short-term trading. So, a minor corrective rally could be on the cards. Daily chartChart source: NetstationGold will likely drop to $1,240-$1,235 in a couple of weeks, albeit after a minor corrective rally, the technical studies indicate. Hence, a minor corrective could be on the cards next week despite the death cross. ViewThe death cross confirmation could yield a minor corrective rally to $1,282-$1,285 range.Metals Price Forecast: June 20, 2018 | Gold Price Drops To 6 Month Low - Is Now The Time To Buy? [Video]
Gold prices dropped to a 6 month low on Wednesday as the U.S. dollar lingered around 11 month highs, whilst platinum hit a 2-1/2-year trough. Where next for prices? Watch The Gold & Silver Club review Silver, Gold, Copper and Platinum and share the latest price forecast and predictions.collected by :kiven Dixter
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