Price of Gold Outlook: Precious Metals Seek Bullish Catalyst

Price of Gold Weekly Technical Outlook: Neutral

  • Prices of gold action might continue to oscillate in the lack of the required bullish catalyst
  • Precious metals seem largely supported by the uptrend pressure despite the latest headwinds
  • Gold rose 1% lower and silver plunged 3% last week with shiny commodities gives back the gains
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Prices of gold are still turbulent with the bears and bulls fighting over the direction of these precious metals. The previous 5 trading bouts steered the silver and gold prices lower on the balance by 3% and 1% respectively. This marks the 1st weekly drop for silver and gold since the precious metals based September. Essentially, the volatility of the gold prices is still expected amidst the big swings in the real yields and US Dollar recently.

GOLD PRICE CHART

prices of gold

The relief rebound from 100-day SMA and $1,865 price level that sent the yellow metal recoiling back higher, but the pullback was weakened by the previous support that turned into resistance. The increased Bollinger Band width underpins the prices of gold consolidating sideways between the critical fundamental hurdles. Furthermore, it is highly likely that the gold recoiling in the confines of the mid-term bearish and near term bullish trends as S&P 500 Index Falls With Hopes of Stimulus, ASX 200 Climbs With RBA Touts Easing.

A closer look ahead, headwinds seem to linger over silver, and gold in the past 2 months may keep nudging gold lower, but this outlook seems broadly constructive. The price of gold rally might be at the risk of a breakdown towards the $1,800 level incase the bears make the nudge under $1,865/oz. the scenario grows more in the absence of the highly required bullish catalyst. Technically, the precious metal can resume the parabolic action with a shift back over $1,930/oz since this may open doors to the key significant $2,000 price handle and above.

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