Gold: Price Outlook
Spot gold’s weekly price action is going deeper into correction territory, reaching $1,893 during the week despite Friday’s rebound that brought it back $1,900
“The mid-term outlook remains bearish as the 5-week EMA is dynamically positioned at $1,938, making a potentially bearish crossover to the Weekly Middle Bollinger Band of $1,948, which may be seen as indication that bears have enough fuel for further downside exploration
In the week ahead, sustainability below the 5-week EMA of $1,938 will keep the bearish momentum intact with potential for a retest of the $1,893 low and the 50-week EMA of $1,888
Resumption of the uptrend will require gold to clear through $1,948 first, and further resistance at $1,975, $1,958 and $1,968, he said.
“If bulls fail to clearly establish recovery above $1,948, bearish correction is very likely to extend deeper into the 200-day SMA of $1,860. Major support sits at the monthly Middle Bollinger Band of $1,835
