• 3 days Banking Stocks Could Be Set For Another Bumper Year
  • 4 days Crypto Mining Migration Continues As Bans Line Up
  • 5 days The Meme Stock Craze Could Lose Out to Crypto
  • 8 days Banking Sector Booming As Stock Market Lags
  • 9 days Has Bitcoin Stopped Bleeding? Some Analysts Seem To Think So
  • 9 days Amazon ‘Competitor’ Charged With Crypto Fraud Scheme
  • 10 days As Competition Heats Up, Cable TV Mega-Merger Revived
  • 11 days China’s Road To Tech Independence
  • 16 days 3 Major Bearish Catalysts For The U.S. Economy In 2022
  • 17 days VR Industry Boomed During Holiday Season
  • 18 days 3 Global eCommerce Brands Have Overtaken Amazon
  • 19 days Another Banner Year for Billionaires
  • 23 days Top 3 Predictions For Bitcoin In The New Year
  • 25 days China Moves To Tighten Rules For Companies Looking To List Abroad
  • 25 days Fake Reviews Go All The Way To The Top
  • 32 days Airlines Want The Government To Ditch Emergency Testing For Covid-19
  • 33 days The Service Robot Industry Is Booming
  • 37 days The 3 Biggest Market Risks In 2022
  • 40 days Fintech Valuations Have Grown Red-Hot
  • 47 days DIDI Delisting Is A Worrying Sign For Investors Holding Chinese Stocks
Clive Maund

Clive Maund

Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports.

Contact Author

  1. Home
  2. Markets
  3. Other

Gold Market Update

While gold did not become anywhere near as overbought as silver on its mid-month run-up, the odds favour a short-term correction from here. There are several factors that taken together make this likely.

Looking at the 6-month chart we can see the strong advance in the middle of the month, comprised of 3 white candles, but following this the advance has slowed right down, and several "doji" candles have formed. This type of candle frequently signals a reversal, particularly when, as is the case here, other technical factors concur in signalling the likelihood of a downturn. These other factors are that the price has stalled right at the resistance at the highs of much of last month's trading range, and, coincidentally, right at the resistance at the falling 50-day moving average, both of which increase the likelihood of a short-term pullback.

Otherwise the picture is quite bright, with gold having taken off nicely from support at its long-term trendline, breaking the downtrend in force since December in the process. As already mentioned it is not seriously overbought, so after a short-term reaction, probably back to support in the $420 area, it is likely to pick up again.

The dollar has dipped back into an area of support above its 50-day moving average, from which a short-term bounce back up towards the 85 area is likely, which fit's the outlook for gold.

Back to homepage

Leave a comment

Leave a comment