Gold Weekly Price Analysis – May 25
A radical momentum is required to drive the Gold price out of the consolidation mode. Should the Bulls push the price above the $1,292 level and the candle close above the level, then, the price may rally towards $1,353 level.
Resistance levels: $1,292, $1,353, $1,389,
Support levels: $1,242, $1,181, $1,130
XAUUSD Long-term trend: Ranging
XAUUSD is ranging in the long-term outlook. Gold continues moving around the same level for over three weeks; that is the metal is consolidating on the same level. Neither the Bulls nor the Bears have gotten enough momentum to break out of the descending triangle formed on the weekly chart. Two weeks ago, the Bulls tried to push the Gold price up above $1,292 level, the candle ended up close as bearish. Last week candle was bullish but unable to push the Gold price above the former level. The Gold price is consolidating at the lower trend line of the triangle.
The Gold price is still trading in between the 21 period EMA and 50 periods EMA. The two EMAs close to each other and remain flat without showing specific direction; this indicates that consolidation is ongoing in the Gold market. The Relative Strength index period 14 is below 60 levels with the signal line moving sideways as a sign of consolidation within the market. A radical momentum is required to drive the Gold price out of the consolidation mode. Should the Bulls push the price above the $1,292 level and the candle close above the level, then, the price may rally towards $1,353 level. In case the Bears penetrate the lower trend line and the bearish candle closes below it, the price may descend towards $1,242 – $1,181.
XAUUSD Medium-term Trend: Ranging
XAUUSD is ranging on the daily chart. The price is yet to break out of the descending triangle formed last week. The Gold market closed yesterday with a daily bullish candle; which indicates that the Gold price may touch the upper trend line at $1,292 next week.
Meanwhile, the RSI is below 60 levels with the signal line pointing up to indicate a buy signal.
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