Quek Ser Leang, UOB Group Market Strategist, exposes your opinion on the prospects of the yellow metal.
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After Spot Gold spiked to a high of $2,072…we note that “the advance to $2,072 lacks momentum, as can be seen from the daily MACD, which is barely positive.” However, we note that spot gold “has potential to continue to rally towards the top of the rising wedge near $2,100 before the risk of a reversal increases.” And we added: “If Spot Gold falls below $2,020, it will most likely test $1,963“.
spot gold it not only broke below $2,020 in the middle of last month, but also $1,963. On Tuesday (May 30, 2023), continued to fall to a low of $1,932. The low appears to have slightly broken both the 21-week exponential moving average and the uptrend line connecting the lows of October of last year and March of this year. Price developments, combined with the negative turn of the weekly MACD (since last week), suggest an increasing risk of a bearish reversal.
However, spot gold has to break support at the bottom of the daily Ichimoku, now at $1,920, before it can weaken towards $1,870 (the current level of the 55-week exponential moving average). The risk of spot gold clearly breaking below $1,920 will remain intact in the next month or so as long as it does not move above the top of the daily Ichimoku cloud, currently at $1,992..
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
