In the federal reserve’s aggressive policy, the signs of softening allowed the gold market to breathe. The gold market caught a new rise acceleration after three -month sharp drops last week. Market analyst Ross J Burland says that gold bulls are watching $ 1,800 again this week. Accordingly, according to the analyst, the price is possible to see a correction, but techniques are in favor of the bulls. We prepared Ross J Burland’s technical analysis for our readers.
“Gold takes advantage of lower interest and softer dollars”
A new week, a new moon and bulls remain under control for open. Kriptokoin.comAs you have followed, Gold closed Friday with an increase of 0.58 %. Thus, it increased its third session in succession. It is also on its way back to reclaim the losses of $ 1,800 at the beginning of July.
The recession of the US economy in the second quarter pointed to recession. This caused interest rates to decline and the dollar lost power. Precious metal benefits from lower interest environment and softer US dollars. Valuable metal for those looking for a safe port in addition to the dollar evaluates this opportunity.
Gold Technical Analysis: Bulls are entering the critical recovery area
In the last analysis, it was accepted that the US bonds were in the background with a 10 -year interest rate limit for the lower limits of the expanding formation of the daily graph.
The expanding formation seems to be challenging, which provides more space to support gold prices.
With this game, the Golden Bulls experienced a clear rise towards the end of July. In addition, the W Formation of the daily graph emphasized at the opening last week completed the price imbalance (gray area) as follows:
In the meantime, for the opening, it is possible to make profits before the next potential rise in order to reduce price imbalance between $ 1,772 and $ 1,804. In addition, a price movement that results in retreat in the price is possible. In this way, we are likely to see some reflection from traders and investors.
In the meantime, there is a 38.2 %Fibonacci and 50 %average return area of around $ 1,750 and a combination of previous heights and default support structure.
“For a trend change, you need to close to $ 1,785”
Evaluating the impact of the developments in the market on the gold market, TD Securities analysts make the following comment:
A short -term rally occurred in global markets. As long as this continued, the probability of a CTA purchasing program underneath increased. However, in order to trigger a change in the trend signals, prices still need to close to the north of the $ 1,785 level.
