Gold Remains Bullish But Positive Impetus Runs Low On Fuel
XM Group | May 31, 2021 02:38PM ET
Gold seems to be taking a breather slightly north of the 1,900 hurdle, despite having formed fresh footing off the red Tenkan-sen line around 1,882. The rising 50-day simple moving average (SMA) and its near completion of a bullish crossover of the 100-day SMA could help resuscitate bullish impetus.
The calming in the Ichimoku lines is indicating a small pause in positive sentiment, while the short-term oscillators, which are suggesting bullish momentum is resilient, are favouring the upside. The MACD, some distance in the positive region, is standing above its red trigger line, while the RSI is persisting in overbought territory. Moreover, the stochastic oscillator’s recently regained positive charge is promoting improvements in the commodity’s price.
If buying interest intensifies, upside constraints may originate from gold’s recent uptick to a 4½-month high of 1,913, before a transitional zone of resistance emanates around the 1,931 level. Successfully steering past these obstacles could then bring the crucial resistance section of 1,960-1,974 into play. Should buyers navigate past this durable barrier, they could then propel the price towards the September 2020 high of 1,992.
Otherwise, if the price dips back below the 1,900 mark, initial support could come from the red Tenkan-sen line at 1,882, and the nearby low of 1,872. Retreating further, the price may then target the tentative uptrend line – pulled from the 1,678 trough – and the support region between 1,856 and 1,844. Should sellers manage to steer below the 200-day SMA at 1,844 and the neighbouring blue Kijun-sen line at 1,834, they may then aim for the 1,808-1,816 support zone.
Summarizing, gold is enduring a short-term bullish demeanour above the 1,872 low and the SMAs. A dip below 1,900 could throw doubt into additional price improvements.
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