Gold best week close from 2015 despite Thursday beating

Gold price makes best weekly closing from 2015 to present. This is despite 2.9% thrash down after a new 52-week high of 1315.59 was traded briefly. XAUUSD closes positively 3 weeks in a row.

 

Best close despite Thur 16 June 2.9% thrash down

Key features:

  1. Higher month to month highs since January 2016.
  2. Apart from May low which was a short-lived dip, there is now a 4-month support at 1200 region since March.
  3. Weekly moving averages 13, 26 and 52 weeks print golden cross, provide support.
  4. Price made new 52-week high above previous 1307; highest now 1315.

    XAUUSD weekly chart - present

    XAUUSD achieves best weekly closing from from 2015 to present | XAUUSD weekly chart – present

  5. Despite Thursday thrashing following risk-on mode (British MP murder, Brexit campaigning suspended), XAUUSD has best weekly closing in one and year half years.
  6. Thursday thrash down was a steep 2.9% correction from 1315 – 1277.

    XAUUSD H4 chart from 17 May to present

    Week to week XAUUSD powers higher | XAUUSD H4 chart from 17 May to present

 

6-month trend of XAUUSD reversed, new 52-week high

In previous post, we covered already how XAUUSD has already terminated down trend on 6-month basis. On 26 May I wrote

‘Reversal’ story remains intact

Gold bulls should not worry excessively however. After such a blazing rally, it is likely that the current correction is driven by profit taking rather than a true sell-sell. The way I see it, something did change on the bullish side. At least on a 6-month basis, this year’s early rally did terminate the previous down trend since 2012. So all that has to happen in favour of bulls now is for a price support to be found, to make a higher low that will attract bullish entrants that will push price to a new high.

XAUUSD 6 monthly price action

XAUUSD 6 monthly price action painted in pink boxes

It is clear that market has found its footing and with a new 52-week high, it is a matter of time from XAUUSD to convincingly beat the year to year down trend from 2013 – 2015. Also gold buyers could take a cue from price of mining stocks.

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Soh Tiong Hum is Director of TerraSeeds Market Technician Pte Ltd. TerraSeeds is a trading educator in Singapore since 2005.   Soh's Twitter account @sohtionghum was ranked #23 out of The Top 70 Twitter Accounts To Follow In 2015 by MahiFX.   Disclaimer notice: "I do not have a financial advisor's license. I am not qualified by any regulator to give financial advice. I do not know you the reader. Your investment means and motive may be different from me. My posts here are based on observations and meant for education. I am not responsible for for any consequence from your actions."
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