Gold: no motivation for an uptrend?

Gold: no motivation for an uptrend?

2022-08-30 • Updated

Fundamental

With the news strains and the necessity of new lockdowns in many states, the virus is going bad in Europe – again. In the US, however, it looks comparatively stable – enough to let market observers get swayed by the prospects of a recovery that’s rolling all around. The latest NFP release that turned out better than expectations added to the optimism and investors turned away from gold.

Moreover, high US Treasury yields have been hammering the gold price to the downside lately. On top of that, there are cryptocurrencies now, with Bitcoin expected to reach hundreds of thousands of dollars in value over the next few years – which seems a plausible alternative to gold.

Together, these and other factors added up to make a solid reason for gold to stay in the downtrend and make new local lows. Will it change in the foreseeable future? It may. But so far, fundamentals are rather on a sideways-bearish side. At least, until the next US-China or another global geopolitical conflict erupts.

Technical

An almost direct-line downward diagonal of the 200-MA indicates that gold has been going down for quite some time already. Since summer 2020, to be precise. That means, for the last nine months, it’s been sliding down just to interrupt the downtrend by occasional upward incursions slightly above 50-MA and 100-MA. Very possible, we are now observing the same scenario. In this case, what is being formed now is a part of a fresh high that’ll see a downward reversal soon.

At the same time, the support of 1680 that was reinstated as such instead of getting broken last week suggests that the sideways pattern of the last three weeks may extend. Probably, this scenario should be taken as primary until bulls push gold to cross the resistance of $1755 – or drag it below $1680.

XAUUSDH4.png

                                                                                             LOG IN

Similar

Top Stocks to Trade this Earnings Season
Top Stocks to Trade this Earnings Season

The S&P 500 had a good week due to the impressive start of Q1 earnings and favorable inflation data. In March, the consumer price index rose 5%, lower than the previous month's 6%, and met economists' expectations.

Top Stocks to Invest in 2023
Top Stocks to Invest in 2023

The previous year 2022, was undoubtedly tumultuous for the stock markets, with several stocks plummeting across multiple industries. Analysts have blamed the hard times on inflation, hawkish federal reserve policies, an impending global recession, and the ongoing crisis in Ukraine. This year, however, we're beginning to see some recovery in the stock markets. This article will find a few stocks worth buying this year.

MSFT faces gloomy forecasts ahead of earnings report
MSFT faces gloomy forecasts ahead of earnings report

In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.

Latest news

Gold’s Next Move Could Be Huge!
Gold’s Next Move Could Be Huge!

Let's dive into the world of gold. Currently, the price of gold, represented by XAUUSD, is stuck in indecision, hovering around the $1,975 mark. The market is anxiously awaiting two important factors: the release of the Federal Reserve's meeting minutes and the extension of the US debt ceiling.

What to Trade in June
What to Trade in June

Hey guys, this is the last full trading week in May, and many forward-looking individuals like myself are already preparing themselves to seize whatever opportunities June may have in store. On this note, I will review a few commodities that have satisfied my quest for swing-trading opportunities in the coming month. Follow me!

Will GBP Recover Now?
Will GBP Recover Now?

The Bank of England (BoE) has dramatically shifted its economic forecasts. They no longer expect a recession in the UK and have upgraded their growth projections. This year, the BoE predicts GDP growth of +0.25%, a significant improvement from previous expectations. Next year's forecast is even more optimistic, with a projected growth of 0.75%.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera