Gold Price Prediction as Buyers Break Multi-Year Barrier to Chase New High
Gold Price Prediction: During Asian trading hours on Monday, the Gold price hit a new all-time high of $2,265 per troy ounce. However, the yellow metal witnessed a sudden pressure in the US session, following the release of the upbeat US Manufacturing PMI data. The selling pressure evidenced by a long-wick rejection candle, the XAU/USD pair fell to its current trading price of $2237.
However, with the expectation of monetary policy easing by major central banks, the broader trend in Gold remains bullish coupled with upside potential from technical analysis.
Also Read: QuadrigaCX Co-founder Face Scrutiny Over Cash and Gold Holdings
Is GOLD Price Rally Sustainable?
The XAU/USD pair entered an aggressive recovery mode in mid-February as the buyers found suitable support at the weekly 20 EMA slope at $1984. The positive turnaround uplifted the precious metal by 14.18% within seven weeks to hit an all-time high of $2265.
Amid this rally, the Gold price gave a decisive breakout from the resistance trendline intact for the past 12 years. Since 2011, the dynamic resistance has proven to be a significant hurdle for gold investors, thwarting recovery attempts in 2020, 2022, and twice in 2023.
Furthermore, an analysis of the monthly time frame chart revealed this resistance as the neckline of a bullish reversal pattern called cup and handle. This chart pattern is commonly spotted at market bottom and signals a major change in market dynamics.
By the press time, the XAU/USD trades at $2238 with an intraday loss of 0.24%. This downtick is likely attributed to the release of optimistic US Manufacturing PMI data, which indicated an expansion in the manufacturing sector. The Institute for Supply Management (ISM) reported that its manufacturing PMI rose to 50.3 last month. Typically, a value above 50 suggests sectoral growth and may bolster confidence in the US dollar.
Also Read: Peter Schiff Names New Bitcoin (BTC) Killer, It Is Not Gold
However, as the technical outlook, the Gold price may witness a minor pullback to retest the recently breached neckline situated at the $2100 mark. Thus, the previous metal may see 1-2 months for consolidation to stabilize its price for a higher rally.
Under the influence of a bullish pattern, Gold is poised for a long-term target of $3000 per troy ounce.
Technical Indicator
- Exponential Moving Average: The support of 20 EMA in weekly charts continues to bolster an aggressive bull run.
- Average Directional Index: The daily ADX slope at 46% reflects an overextended rally and a need for a minor pullback to sustain long-term growth.
The post Gold Price Prediction as Buyers Break Multi-Year Barrier to Chase New High appeared first on CoinGape.
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Gold Price Prediction as Buyers Break Multi-Year Barrier to Chase New High
Gold Price Prediction: During Asian trading hours on Monday, the Gold price hit a new all-time high of $2,265 per troy ounce. However, the yellow metal witnessed a sudden pressure in the US session, following the release of the upbeat US Manufacturing PMI data. The selling pressure evidenced by a long-wick rejection candle, the XAU/USD pair fell to its current trading price of $2237.
However, with the expectation of monetary policy easing by major central banks, the broader trend in Gold remains bullish coupled with upside potential from technical analysis.
Also Read: QuadrigaCX Co-founder Face Scrutiny Over Cash and Gold Holdings
Is GOLD Price Rally Sustainable?
The XAU/USD pair entered an aggressive recovery mode in mid-February as the buyers found suitable support at the weekly 20 EMA slope at $1984. The positive turnaround uplifted the precious metal by 14.18% within seven weeks to hit an all-time high of $2265.
Amid this rally, the Gold price gave a decisive breakout from the resistance trendline intact for the past 12 years. Since 2011, the dynamic resistance has proven to be a significant hurdle for gold investors, thwarting recovery attempts in 2020, 2022, and twice in 2023.
Furthermore, an analysis of the monthly time frame chart revealed this resistance as the neckline of a bullish reversal pattern called cup and handle. This chart pattern is commonly spotted at market bottom and signals a major change in market dynamics.
By the press time, the XAU/USD trades at $2238 with an intraday loss of 0.24%. This downtick is likely attributed to the release of optimistic US Manufacturing PMI data, which indicated an expansion in the manufacturing sector. The Institute for Supply Management (ISM) reported that its manufacturing PMI rose to 50.3 last month. Typically, a value above 50 suggests sectoral growth and may bolster confidence in the US dollar.
Also Read: Peter Schiff Names New Bitcoin (BTC) Killer, It Is Not Gold
However, as the technical outlook, the Gold price may witness a minor pullback to retest the recently breached neckline situated at the $2100 mark. Thus, the previous metal may see 1-2 months for consolidation to stabilize its price for a higher rally.
Under the influence of a bullish pattern, Gold is poised for a long-term target of $3000 per troy ounce.
Technical Indicator
- Exponential Moving Average: The support of 20 EMA in weekly charts continues to bolster an aggressive bull run.
- Average Directional Index: The daily ADX slope at 46% reflects an overextended rally and a need for a minor pullback to sustain long-term growth.
The post Gold Price Prediction as Buyers Break Multi-Year Barrier to Chase New High appeared first on CoinGape.
Read More