Gold Weekly Price Analysis – July 25
The breakup at the resistance level of $1,900 may lead to other psychological resistance levels of $1,920 and $1,950, this level was set nine years ago. In case the resistance level of $1,900 holds, it may bring a big fall in price to the yellow metal, decline to $1,871, $1,850 and $1,811.
Resistance levels: $1,900, $1,920, $1,950
Support levels: $1,871, $1,850, $1,811
XAUUSD Long-term Trend: Bullish
The gold price soared like an eagle to the high that has not been traded since 2011. Beyond traders’ imagination, the yellow metal broke up the overbought zone at $1,811; it was exposed to a significant level of $1,850, in which the buyers increase their pressure and the level mentioned broke up and attained the resistance level of $1,900. This may be due to the weakness in the dollar’s strength.
Gold may continue to rally higher even at the overbought level; the breakup at the resistance level of $1,900 may lead to another psychological resistance level of $1,920 and $1,950, this level was set nine years ago. In case the resistance level of $1,900 holds, it may bring a big fall in price to the yellow metal, decline to $1,871, $1,850 and $1,811. The price is trading far above the 9 periods EMA and 21 periods EMA which indicates strong bullish momentum. The Relative Strength Index period 14 is found above 80 levels with the signal line strongly pointing upside which indicates a strong buy signal.
XAUUSD Medium-term Trend: bullish
On the 4-hour chart, Gold is bullish. After the price consolidation experienced in the Gold market last two weeks, the bulls have been holding the market tightly. Several resistance levels were broken upside which is not in the context of many traders. Currently, it has reached a long time attained high at $1,900.
The yellow metal is trading above 9 periods EMA and 21 periods EMA and the two EMAs are following the trend and fan apart which indicates a further increase in price. The Relative Strength Index period 14 is at 80 levels with the signal line pointing upside which indicates buy signal.