CFD News: Gold, have bulls started a new move higher?
Looking at gold, buyers continue to push the case for a new rally higher. We saw the intense buying after Russia invaded Ukraine and the sell-off that followed last week. Was the sell-off scenario a case of too overbought market conditions? Could it be a case of buying the rumor, selling the fact? Yes, we heard about talks and ceasefires, but the fighting didn’t stop.
Our thoughts are that this could be an important indicator of where gold demand is truly at. The key driver had passed, and we saw the market react and then reverse. Currently, we are watching a new breakout from the consolidation that started on the 16th. Тraders stopped selling and formed a range between 1916.50 and 1944. Yesterday, price broke out of that range and continues to hold above that point today.
A hold and continued move higher tells us that buyers are still in the market, and with continued momentum, we could see a new push to test the resistance noted by the orange box at the 1992 area. Even if the price makes a pause in this area, if we continue to see new higher lows, this will mean that the buyers can eventually continue the move. A pullback to the orange box at 1940 wouldn’t be a trigger for a new sell-off, as long as buyers get price back above the range break.
If we see a move by sellers that closes below the range bottom, we will be very suspect and could start to think that sellers are back in control.
Gold D1 Chart
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