- GOLD eyes $1,800/oz.
- Retail sentiment is mixed despite traders being heavily long of gold.
- The recent break through the double-bottom neckline resistance favours bullish traders.
Gold is continuing to press higher and is now at around $1,788/oz. higher than the recent double-low print made in early/late March. This double bottom was just below the 61.8% Fibonacci retracement level at $1,689/oz. and the 50% Fibonacci retracement level around the $1,764/oz is now acting as a new level of support. If this continues to hold, the precious metal is likely to attempt to break back above $1,800/oz. before it eyes the 38.2% Fib level at $1,837/oz.
An uptick in the US bond yields and modest USD strength. The recent break through the double-bottom neckline resistance favours bullish traders. The XAU/USD seems poised to surpass the $1,800 mark and test the $1,815/16 barrier. Looking at the technical picture, last week's move beyond the $1,760/65 hurdle validated a bullish double-bottom formation near the $1,677/76 region. The constructive set-up is reinforced by bullish technical indicators. This, in turn, supports prospects for an eventual break through the mentioned barrier and additional near-term gains.
Looking at the technical picture, last week's move beyond the $1,760/65 hurdle validated a bullish double-bottom formation near the $1,677/76 region. The constructive set-up is reinforced by bullish technical indicators. This, in turn, supports prospects for an eventual break through the mentioned barrier and additional near-term gains.
On the flip side, the double-bottom neckline resistance breakpoint, around the $1,765/60 region should now protect the immediate downside. This is followed by support near the 23.6% Fibo. level, around the $1,745/44 area and the $1,730 level. Sustained weakness below will negate the positive outlook and prompt some aggressive technical selling.
The XAU/USD might then turn vulnerable and accelerate the fall towards challenging the $1,700 round-figure mark. Some follow-through selling would expose the double-bottom support, around the $1,677/76 region, or multi-month lows touched in March.
