Gold Weekly Price Analysis – August 08
Resistance levels: $2,074, $2,120, $2,180
Support levels: $2,020, $2,000, $1,984
XAUUSD Long-term Trend: Bullish
Gold has crossed $2,000 price level for the first time. Since July 16 Gold has only one down day on July 30, it has been on the strong bullish trend. Last week, the price extends its bullish pressure to the resistance level of $2,074. Yesterday, there was a pullback at the just mentioned resistance level to retest $2,020 price level with the formation of a daily strong bearish candle.
The rise in the price of Gold is currently pulling back and the first place to encounter support level is $2,020 followed by $2,000 and the 2011 high at $1,984. In case the current level is broken, well it will be an overly or overbullish market that may not be healthy for the economy, however, $2,120 and $2,180 are imaginary resistance levels. The Relative Strength Index period 14 is at 75 levels with the signal line bending down to indicate sell signal.
XAUUSD Medium-term Trend: bullish
The yellow metal played out the way it was predicted last week; the former resistance levels of $1,984 and $2,000 were penetrated upside and the price rallied to test $2,074 level. The bullish momentum at $2,074 level looks weakened and the price turns downside with bearish candles formation. The weekly Gold market closed around $2,020 zone.
Also, the gold market condition looks bullish as the relative index period 14 is pointing up at 50 levels. At the opening of the Gold market, an instant buy trade setup can be placed at $2,034.90, take profit at $2,070.20, and stop-loss at $2,004.17.