The bulls have more chance!
After three days trading above the upper-line of its range at 1790 (20 DMA), last night gold eased lower 0.4% to test range line, however still holding the price above that. And now it is trading above $1796 with a 0.1% gain.
Market conditions for gold are not changed yet. The Yellow metal still does not have enough reason and encouragement to move one way or another, to find the trend up or down. Therefore for now, still, we are expecting choppy range trading.
For now and ahead of New-year eve, while stronger USD putting some pressure on Gold, again omicron variant of coronavirus increasing the market risk to hold the gold demand in place. On the other hand, while many European countries thinking about more restrictions during the New Year holidays, in the united states, the market still counting on more thinning policies in 2022, as already FED increased the tapering level to $30B monthly to end it on mid-March and White House announced that they are not going to have any restrictions for Corona concerns.
Overall data and news, telling us that still we cannot consider any specific direction and this seems forgotten. Therefore, choppy trading in the gold price can continue, as investors wait for Thursday’s US PCE Inflation and Durable Goods data for some fresh trading ideas.
From the technical point of view, gold is holding its bullish tendency with an increasing OBV trend line, RSI above 50, and increasing prices above the range with an important resistance at 1817.00 regions which will present a new bullish trend all way up towards 1840.00. Support line sitting first at USD 1790.00, followed by USD 1770.00.
