Careful Traders — Gold Price Maybe Overheating

The Daily View for Gold

  • At the time of this writing, XAUUSD’s price is up $8.08 (0.43%) from the day prior.
  • This is a reversal of the price action on the previous day, in which price moved down.
  • If you’re a trend trader, consider that the strongest clear trend on the daily chart exists on the 50 day timeframe.
  • The moving averages on the daily timeframe suggest a bullishness in price, as the 20, 50, 100 and 200 are all in a bullish alignment — meaning the shorter durations are above the longer duration averages, implying a sound upward trend.
  • Divergence between XAUUSD’s price and its RSI may be manifesting. As such, be on the lookout for trend reversal in XAUUSD’s price.

Below is a daily price chart of Gold.


Featured Gold Idea From TradingView

Below is a trading comment entitled Gold within Bullish Rectangle and is expected to reach 12M high you may find interesting:

The Gold Spot (XAUUSD) is currently trading within Bulish Rectangle on Daily chart and is expected to reach 12 month high by the end of the week. As I expected during my last week’s commentary, the Price Action on Gold Spot, at the very beginning of the week, managed to reach the 1873,90-1877,90 resistance cluster, but failed to breach it and rebounded back to the 1850,90-1853,90 strong support zone. In aftermaths, due to strong fundamental effect, mostly pointing at Russia-Ukraine conflict and all correlated effects on the markets, the Price Action gained huge bullish momentum finnaly resulting in 40 Points gain on the Gold Spot throughout last week, with market closing below the 1.900,90 psychological barrier. The Russia-Ukraine conflict is hugely affecting markets, with investors running from riskier assets and investing in safe haven assets such as Bonds, Swiss Franc and commodities. It is also worth noting that inflation is still on high levels, with Producer Price Index (which represents the leading indicator of consumer price inflation, month over month) resulting in 0,5% higher than expec…