Gold has been trading sidways for a while now. ADX contains low value which suggest neutral trend remains in place. In addition to that RSI, MACD and Stochastic are neutral. Despite current struggle in gold to move up we remain optimistic on future price of gold. Our medium term price target remains 1850 USD and our long term price target remains 1875 USD.
Prior developements from 21st July 2021: Here we suggested that gold would be moving along upper channel line for indefinite amount of time. We still expect gold to decouple from this area and move to the upside.
More developements from 30th June 2021: Here we hinted at divergence between price and RSI. We also correctly predicted reversal in price direction.
More developements from 26th May 2021: Here we suggested that gold reached overbought zone and odds of correction were increasingly growing.
More developements from 16th April 2021: Here we correctly predicted move to upper bound of downward moving channel.
Disclaimer: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.
U.S. data happened to be upbeat, and it is expected next FOMC meeting will announce taper, if taper, usually to be followed by rate hikes, also descending and control of inflation, will push bearish investors on gold. I still mention im not gold trader but as it is correlated to usd i wanted to share the information.
Tradersweekly
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@MohamedElsodoody, I see. Also unemployment data was upbeat. All reasons you mentioned definitely present obstacles for higher price of gold. But then do not forget that last year we saw rising USD and rising gold at the same time. We also saw rising gold (since 2016) despite FED rising rates. So lets see what happens. Thank you for your response.
MohamedElsodoody
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@Tradersweekly yes i know it is not 100% correlated, some exceptions can be fundamentally, just wanted to share that definitely the usd is getting stronger and readings for inflation are somehow dropping, anyway i wish you luck in gold trades.
Tradersweekly
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@MohamedElsodoody, Sure, thank you for sharing. Wish you best as well with your trading and thank you so much!
I don’t know about gold but the dollar is getting stronger fundamentally and the inflation started to stop and modestly reverse, just put this information into your account, and wish you luck my friend.