Sep 30 2022, 08:00+05:00
VOT Research Desk
Analytical Viewpoint of Gold
The relative strength index (RSI) rises above 30 to provide a classic buy signal, and the price of gold continues to rise from the yearly low ($1615). However, the former support area near the July low ($1681) may now act as resistance because bullion seems to be following the downward slope in the 50-Day SMA ($1726).
Following failed attempts to move below the Fibonacci overlap around $1601 (38.2% expansion) to $1618 (50% retracement), the price of gold recovered from a new yearly low ($1615), with a move above the $1670 (50% expansion) region bringing the $1690 (61.8% retracement) to $1695 (61.8% expansion) area back on the radar.
The next area of importance is at $1726 (38.2% retracement), which coincides with the 50-Day SMA ($1726). However, if the former-support region at the July low ($1681) works as resistance, the price of gold may continue to follow the moving average’s negative slope.
Gold’s price might drop down towards the overlap between $1601 (38.2% expansion) and $1618 (50% retracement) if it fails to hold above the $1648 (50% expansion) sector. A break/close below the $1584 (78.6% retracement) region would expose the April 2020 bottom ($1568).
