Gold Weekly Price Analysis – August 24
Increase in the Bullish momentum may break up the resistance level of $1,539 and target the resistance level of $1,601. In case the $1,539 holds, the price may start consolidating within the range.
Resistance levels: $1,539, $1,601, $1,662
Support levels: $1,478, $1,435, $1,389
XAUUSD Long-term Trend: Bullish
On the long-term outlook, Gold is bullish. The Bears initially dominated the Gold market last week and the price pulled back towards the demand level of $1,478 level. The Bulls did not succumb to the pressure of the Bears; the decrease in price was opposed by the Bulls and the price was pushed up towards the resistance level of $1,539 but unable to break up the level. The market closed bullish but below the resistance level of $1,539.
The Gold price remains within the resistance level of $1,539 and the support level of $1,478. Gold’s trade is still above the 21 periods EMA and 50 periods EMA and the distance between the price and the two EMAs is increasing which indicates that the Bulls’ momentum is strong. In case the Bulls increase their momentum, the resistance level of $1,539 may be broken up and the price will rally towards the resistance level of $1,601. Should the Bears further defend the resistance level of $1,539; the price may drop to the demand level of $1,478. However, the Stochastic Oscillator period 14 is above 80 levels and the signal lines pointing up which indicates a further increase in price, nevertheless, the pullback is inevitable.
XAUUSD Medium-term Trend: Bullish
On the daily chart, XAUUSD is bullish. Gold price initially experienced a pullback last week and the price slightly dropped. On August 23, the Bulls gained more momentum and the price was pushed up to retest the resistance level of $1,539.
The Stochastic Oscillator period 14 is at 75 levels with the signal lines pointing down to indicate a sell signal.
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