Gold rallied above $1800 from the daily swing lows and moved back above the $1,810 level, or closer to multi-week tops during the early European session today. A symmetrical triangle is breached by the commodity after breaking the &1800 benchmark with strong bullish momentum but remained within Tuesday’s trading, as the US dollar’s strength countered the slump in Treasury yields. Heading into the critical June FOMC meeting’s minutes, gold price advanced amid pre-minutes caution and worries over covid contagion, which boosted the safe-haven demand for Treasuries while downing the yields. However, the greenback’s advance amid risk-off mood capped the gains in gold. 

Gold to take advantage of higher and more permanent inflation Delay in tightening to de-anchor inflationary expectations and trigger an inflationary spiral, pushing gold up while Hedge funds getting bullish on gold as well. But from the technical aspect - the yellow metal is still below the Daily time frame EMA50 & EMA 200 which has restrained it from moving any higher towards its May and June highs i.e 1820-1826.

We can see Gold advancing towards 61.8 fibb retracement level, one of the major Fibb figure to provide a reversal to the metal and a bearish move can be observed from the current market prices.  

Its been a few days since the commodity and euro were both stuck in a deeper complex corrective structure and took an exit from the triangle wedge and entering into a bullish channel on the intraday time frame. Traders should wait for a further price action below the 1805$ level with a bearish fractal taking an exit from the rising wedge, which will confirm our selling entries.

If an impulsive wave is witnessed breaking out above 1820-1827, we will update our analysis with new wave count to reinstate our directions on the larger time frames for it will denote a bullish momentum being generated in the market. 

GOLD Intraday Bearish Momentum

Jul 08 2021

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