Market analyst Alexander Kuptsekevich says gold price has risen for the fifth consecutive session and is close to testing a critical technical and psychological level around $1,800. Analyst Dhwani Mehta notes that on the daily chart, gold has made a symmetrical triangle breakout and Monday’s close will be the main focus as the yellow metal will target the $1,900 level above $1,793. Cryptocoin. com, we have compiled the evaluations and analyzes of gold analisdollarseries Alexander Kuptsekevich and Dhwani Mehta for you.
Two important signals for gold traders
According to analyst Alexander Kuptsekevich, bears are in no hurry to give up, frustrating attempts to accelerate the growth of gold and other precious metals. In addition, the analyst states that headwinds such as global monetary policy reversal are also worth considering, making the following assessment:
Sellers entered the gold market for the third Friday in a row, forming a pullback at the end of the week. This is often seen as a rather negative signal from market professionals. However, the hardest part for the bulls lies ahead.
Gold closed last week around 200 SMA without any dominance by either side. Analyst, 1.800-1. In the $810 region, gold indicates that it is near the upper boundary of the downtrend and bears have been fiercely resisting attempts to break this trend since June. According to the analyst, we are now seeing another bull attack, so cautious traders may prefer to see the following two signals before betting on a price increase:
The first is consolidation above the 200 SMA, which gold must wait for a few days before confirming this bullish signal.
The second is confirmation of the bearish trend disruption that will occur if the price crosses the previous reversal levels, i.e. rises above $1,830.
“Traders would be prudent to wait for test results of important levels”
Rising global interest rates are often cited among the main factors against gold. However, the analyst emphasizes that the recent jump in interest rates is due to fears of accelerating inflation and that central banks are behind the curve here.
Alexander Kuptsekevich, silver price performance is giving additional bullish signals coming out of a dull sidewall at the beginning of the month, and in addition, gold and silver mining shares have been holding steady support since the end of September, making long-term investors bearish in the sector. It marks the end of the rally.
The analyst reminds us that on previous occasions, gold miners’ buying at high volumes in 2018 and 2013 is a sign of a reversal of the uptrend. Still, the analyst states that traders would prudently wait for the results of the key gold levels test to determine whether it’s a bearish bounce or a bearish break.
Gold price technical analysis: Week high at $1,814 will be stiff resistance
Going forward, risk trends, price action in interest rates and the dollar will continue to influence the price of gold as the Fed’s blackout period and a calm start to the week continue, according to analyst Dhwani Mehta. The analyst points to the following technical levels:
Gold is breaking a symmetrical triangle and the bulls are waiting for a daily close above the falling trendline resistance at $1,793. A triangle breakout will open doors for a fresh rise towards the $1,900 barrier.
Prior to this, the analyst states that the previous week’s high of $1,814 will be a stiff resistance and further up, the September highs of $1,834 will emerge as a tough nut to crack for the golden bulls. continues:
Filip’s side, just down, 1.793-1. It looks padded at around $791. The next critical support awaits at the sideways 50-DMA at $1,780. A resumption of selling could push gold further lower towards the ascending trendline support at $1,775.