Bottom line: Gold had cleared past resistance at $1747 last week and managed to print yet another high at $1765 yesterday. It is difficult to confirm a top in place but a break below $1690 should be the first step towards a bearish reversal.

Fundamental Outlook:

Gold managed to open this week into the green again and rallied to fresh highs at $1765 before reversing lower. The Fed remains committed to do whatever it takes to support the economy and there could be more stimulus coming if required. Watch out for FOMC minutes to be out tomorrow for further tone and guidance.

WTI Crude and Brent gained close to +8.0% yesterday to close at $32.20 and $35.45 per barrel respectively. It was their highest close since April 2020, backed by Global Equity markets. The SPX500 and Dow Jones also rallied to their highest levels since March 23, 2020 posting gains of over +3.0% each. News for near potential COVID-19 find by Moderna Inc. fueled the above rally, shrugging off US-China tensions at least for now.

DAX posted an impressive rally bouncing back from last week’s low at 10160 (gap opening) and closing around 11058 yesterday. The German Indice gained over +5.50% as Germany and France came up with a joint proposal for the EU recovery fund of EUR 500bn. The German and Euro zone Economic Sentiment Index to be out around 05:00 AM EST is expected to rise, which could further boost the above rally.

Technical Analysis:

Gold has broken past $1747 and also managed to print fresh highs at $1765 yesterday before reversing lower. The metal could be close to forming a top around $1770/75 mark or might have already formed one yesterday. It is good to allow prices to break below $1690, initial support to confirm a potential bearish reversal.

Gold remains vulnerable for a sharp reversal as we have been calling since several weeks but the price action fails to confirm yet. It might be good to at least avoid initiating fresh long positions as a potential top could be near.

Traders might wait for a break below $1690 before preparing to sell again. Once $1690 breaks, please allow for a pullback rally towards $1737/40 levels before initiating fresh short positions.

Prepared by

Harsh Japee, Technical Analyst.

Gold Chart

Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.

Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.

MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！

免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。

著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。