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
- Higher month to month highs since January 2016.
- Apart from May low which was a short-lived dip, there is now a 4-month support at 1200 region since March.
- Weekly moving averages 13, 26 and 52 weeks print golden cross, provide support.
- Price made new 52-week high above previous 1307; highest now 1315.
- Despite Thursday thrashing following risk-on mode (British MP murder, Brexit campaigning suspended), XAUUSD has best weekly closing in one and year half years.
- Thursday thrash down was a steep 2.9% correction from 1315 – 1277.
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.
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.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
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