Will Gold Prices Recover Now?

Will Gold Prices Recover Now?

2023-08-22 • Updated

Gold prices have experienced four consecutive weeks of decline, with a 3.6% drop in the current month, marking the worst performance since February. Despite this decline, retail traders are showing increased bullish sentiment toward gold. This suggests that some investors see the lower prices as an attractive buying opportunity. The shift in retail sentiment could be driven by factors such as concerns about inflation and a desire to diversify portfolios. Let’s now see how the charts look.

US Dollar - D1 Timeframe

UsDollarDaily-2208b.png

From the chart we can see that the US Dollar has just reached a pivot zone and is likely to drop from here on out since the overall structure in this case is clearly bearish. In addition to this, we can also see the presence of a resistance trendline as well as the drop-base-drop supply zone. All these point unequivocally in favour of a bearish movement from the current market position.

Analyst’s Expectations: 

Direction: Bearish

Target: 102.621

Invalidation: 103.771

XAUUSD - D1 Timeframe

 XAUUSDDaily-2208c.png

XAUUSD on the daily timeframe seems to be ripening for a bullish move. The confluence of the trendline support, the 200-period moving average, and the pivot zone between the two horizontal lines as drawn on the chart, contribute strongly to the likelihood of a bullish price action from the current market state.

Analyst’s Expectations: 

Direction: Bullish

Target: 1929.22

Invalidation: 1869.10

CONCLUSION

The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.

TRY TRADING NOW

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