Gold Just Breached This Major Moving Average Level

The Daily View for Gold

  • Currently, XAUUSD’s price is up $14.99 (0.84%) from the day prior.
  • It’s been a feast for bulls operating on the daily timeframe, as Gold has now gone up 8 of the past 10 days.
  • Regarding the trend, note that the strongest trend exists on the 20 day timeframe.
  • Regarding moving averages, it should first be noted that price has crossed the 200 day moving average, resulting in them so that price is now turning above it. The moving averages on the daily timeframe suggest a bearishness in price, as the 20, 50, 100 and 200 are all in a bearish alignment — meaning the shorter duration moving averages are below the longer duration averages, implying a stable downward trend.

Below is a daily price chart of Gold.

XAUUSD

Featured Gold Idea From TradingView

Below is a trading comment entitled Gold – could inflation fears set off the next bull market? you may find interesting:

Gold (XAU) has been one of the most unloved instruments in the markets through 2021.in a world where Commodities and Crypto have been on a tear and US equity indices are bull trending, XAU has been shunned – is it now time to add some exposure as Gold potentially plays catch up to almost every other asset class?Certainly, the signs are starting to look promising, with XAU gaining for five straight days – a fate it achieved just seven times in the last 12 months.We’ve seen $80 added to the XAUUSD price since late September – in the process, the price has broken the June downtrend and while it wouldn’t surprise to see a re-test of the former downtrend at $1786 – a rejection here, with good buying through $1890 and we eye the real prize – $1833, where things could get very interesting for traders through here.A break of $1833 and talk of $2000 will clearly ramp up, but importantly flow dynamics will become a far bigger consideration which could accelerate the rate of change in the move higher – driven by increased demand for short-dated call options, hedging flow from dealers and buying from systematic trend-following funds in Gold futures. A closing break of $1833 would be huge for the Gold market.I will turn more bearish on a move through $1782Hedging inflation risks through the Gold marketThe notion of hedging rising inflation risks is helping, where market-based measures of inflation expectations have been pushing higher. The 5-year ‘breakeven’ rate (the difference between 5yr nominal US Treasuries and 5yr Treasury Inflation Protected Securities) has recently lifted from 2.43% to 2.94%; an all-time high. The Fed’s gauge of inflation expectations has risen from 2.14% to 2.43% and now eyes the 2.55% level seen in May.Importantly for Gold we look at US ‘real’ (adjusted for inflation-expectations) rates – that is both towards the Fed funds…

Pepperstone