Gold Weekly Price Analysis – May 04
The Bulls increased their momentum at the early stage of the week and the Gold price was falling steadily. Gold may decline further this week in case the Bears increase or maintain their momentum and the metal may targeting $1,242.
Resistance levels: $1,292, $1,353, $1,389,
Support levels: $1,242, $1,181, $1,130
XAUUSD Long-term trend: Bearish
On the long-term outlook, XAUUSD is bearish. Last week was the party time for the Bears but towards the end of last week the Bulls also celebrated. The Bulls increased their momentum at the early stage of the week and the Gold price was falling steadily. Later in the week, the Bulls reacted against the decrease in the price of Gold and the Bulls pushed the price up; that is why we have the last weekly candle with lower long tail.
The 21 period EMA is below 50 periods EMA and Gold price is trading in between the two EMAs. However, the Relative Strength Index period 14 is above 40 levels with the signal lines bending down to indicate sell signal and further decrease in the Gold price. Gold may decline further this week in case the Bears increase or maintain their momentum and the metal may target $1,242.
XAUUSD Medium-term Trend: Bearish
XAUUSD is on the bearish trend on the daily chart. The Gold price has been making lower lows on the daily time frame. The Bears are still in control of the Gold market. Until the drawn trend line is broken upside and the bullish candle close above it, the Bearish trend continues. The price may likely go down further this week.
Gold price remain below the two EMAs as a sign of a bearish trend. However, the Relative strength Index period 14 is above 40 levels bending up which connotes buy signal and it may serve as a pullback.
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