Gold has been regarded as one of the precious and safest treasures of the economy. While in the start of this week, the gold will see a bullish trend this week. There is a kind of bearish to a bullish trend for the gold but this cannot be confirmed but however, this week looks great.
There is a safe-haven metal which is seen as @1180 in the 1st half of this week. The drop has actually short-lived while there is a possibility to have a pullback in the Dollar $ Index. It has been in the grounds of 97.78 level to 97.00.
On a bright note, Gold has defended a strong bullish trend line that has been connecting the lows of August and previous month. While there has been a quick recovery an the trend line has touched to $1215.70
There has been a huge defense on the base of a trendline, which is not at all encouraging, while there are bulls that have been placed in the chart. It shows that your job is half done while the prices have been fallen in a trap while on the Daily Chart, it looks healthy.
On the week start, the gold will open up at $1,236 – up 1.48 percent on the week.
On the writing front, there has been a resistance level on the chart. While on the other hand, there has been acceptance chart that has already bolstered the bullish trend with there has been a major breakout at 14-day RSI (Relatively Strength Index). Thus bottoming up at the level of 50 Day to 100 Day which seems to be moving at SMA Level. There has been a bullish makeover which has been at 2 or 10 week SMA.
There is a channel falling which means there is a breakout session, which will allow a 200 Day SMA, while there has been on the grounds of $1254. Importantly, there is a major breakout which will happen this week against US Dollar as some of the crucial FOREX Events lining up. The biggest nemesis will happen when there is a major drop for this week.
On the earlier week, FED Powell has downsized the housing market view and also the fiscal deficit which might be another reason the US economy is going in a transformation phase. While the results, that market has been too hot up again which might take a pause till this December. There has been interesting Sharp Drop in the treasury yields & against US Dollar. The technical charts are showing a bearish picture.
The Dollar Index ($) has shown a cold value which is luring a greenback, well there might be another significant drop in a next few days as the daily chart is showing a classic bearish divergence of the relative strength index (RSI).
Gold is likely to rise as there has been a major fall in this week, while there has been a rise in 200 SMA Level. While there has been major bullish setup looking for revalidation if prices have to find an acceptance level there has been a major rising trend line, seen in the daily chart.
If there is a certain breakout level that is triggered there will a major fresh sell-off in the yellow metal, possibly toward the yearly low of $1,273.
Gold to buy for intraday or long-term