After central banks started to move towards lower interest rates and an increase in quantitative easing, this means that gold may be the strongest haven for investors, especially as the US Federal Reserve will start today in interest rate cuts.
Gold is going through a clear rally and there is no room for doubt in it.
In this report we will go into the details of the technical analysis of gold through the monthly charts down to four hours, especially.
- We see the decline of gold from 2011 at the peak of 1916 to the levels of 1048 and this is more than +8000 drop point.
- After that, the rise and the current was reflected at 1431 price.
What will happen next to gold as a safe haven, will it continue to rise or reflected down?
To break the 1048 bottom in the long run.
Yes, the gold target is breaking the bottom but not now we will show you the expected movement in detail:
Given the recent movement from 2016 to the present, we find that the uptrend is only correct and this means that gold will return to the downside again to levels below the bottom of 1048.
But now gold is in a bullish path to achieve the desired target of the uptrend which may be levels of $ 1600 an ounce.
Where we notice the monthly period of the existence of saturation of the stock on the RSI index, which means that gold is already close to the decline so we will show you the expected movement of gold from the monthly Frame to Frame of four hours.
Monthly chart of gold
Note in the previous chart that gold will continue to rise before changing the trend and landing again but after reaching the desired goal.
- So we expect gold to rise to 1500-1600 levels before reversing.
- Also, given the 200-day moving average we notice that the price is very far on the index.
- so in the long run the price should touch the 200-day moving average.
Weekly Gold Chart:
We see the movement of gold slightly clearer and find that the upward movement is not over yet.
- The rise will be to the levels of 1500 – 1600 before the flight to the levels of 1048.
- So today we expect news of interest on the US Federal and interest rate will open the way uptrend.
- we may see 1500 levels.
Daily Gold Chart:
The movement becomes clearer with the smaller frames.
where we notice that the correction on the gold could extend to 1400 levels before completing the bullish move.
But this is uncertain because in the event of interest rate cuts it will be the dominant and will climb the rise of forces may reach as we have previously noted the prices of 1,500 times the news.
so we have to be cautious at the time of the news today.
Chart over 4 hours of gold:
The movement is now more precise after the framing is reduced to four hours:
- Gold may be currently within the correction and with news falling to 1400.
- And then the strong rise to 1500 levels and to 1600 levels.
- But breaking the top of the third wave as shown in the chart we expect the continuation of the uptrend.
Gold is a safe haven and a haven for investors in light of the current political news and events and the attempts of central banks to intervene to accelerate the economy through an increase in quantitative easing or lowering interest rates
- So it would be a good chance if you drop to 1400
- Or break the top of the third wave but the best decline to be the opportunity to buy better stop a little loss