Gold stuck in trendline resistance, What is next?
Gold reached its trendline resistance zone. As a result, the gold reached its highest level at $1848 for two months.
Next, the FED will announce their monetary policy, and I think gold will rise slowly until the FED meeting. There is a big chance that the FED will rise in March and four times this year.
That may bit hampered the pace of rising gold as gold is a good hedge against inflation; from this aspect, gold is still safe and the number one safe-haven asset to the investors during global growth and crisis.
Geopolitical tensions in the West also formed an additional factor supporting gold prices, as skirmishes intensified between Russia and the United States of America after US President Biden indicated that he expected Moscow to move towards Ukraine after it mobilized 100,000 soldiers near the borders of Ukraine, for the Biden administration to announce about $200 million. Additional defense military aid to Ukraine.
Overall, I am still in buy mode in gold, but as gold reaches its trendline resistance level, I am waiting for some downward correction or breaking above the trendline resistance.
Technical analysis:
Based on the current price, $1848/1856 is the trendline resistance zone. So, I will suggest not to buy in the particular price zone.
After breaking above $1856, our first upside target is the $1870/1875 price zone. However, $1870/1875 is a high swing area tested in November 2021. So, the market may take some time to break above the $1875 price zone. Finally, after breaking above $1875, my last target is the $1900/1910 price zone.
On the other hand, as gold is hovering below the trendline resistance, it is very common that gold may drop from this level for correction and profit-taking purposes.
So, if gold drops from this level, it may test the $1830/1828 price zone. Breaking below $1828, it can test the $1823 price zone. However, I am not expecting more than that about this week. So, something doesn't happen unexpectedly, and I don't think gold will change its uptrend very soon.
Next, the FED will announce their monetary policy, and I think gold will rise slowly until the FED meeting. There is a big chance that the FED will rise in March and four times this year.
That may bit hampered the pace of rising gold as gold is a good hedge against inflation; from this aspect, gold is still safe and the number one safe-haven asset to the investors during global growth and crisis.
Geopolitical tensions in the West also formed an additional factor supporting gold prices, as skirmishes intensified between Russia and the United States of America after US President Biden indicated that he expected Moscow to move towards Ukraine after it mobilized 100,000 soldiers near the borders of Ukraine, for the Biden administration to announce about $200 million. Additional defense military aid to Ukraine.
Overall, I am still in buy mode in gold, but as gold reaches its trendline resistance level, I am waiting for some downward correction or breaking above the trendline resistance.
Technical analysis:
Based on the current price, $1848/1856 is the trendline resistance zone. So, I will suggest not to buy in the particular price zone.
After breaking above $1856, our first upside target is the $1870/1875 price zone. However, $1870/1875 is a high swing area tested in November 2021. So, the market may take some time to break above the $1875 price zone. Finally, after breaking above $1875, my last target is the $1900/1910 price zone.
On the other hand, as gold is hovering below the trendline resistance, it is very common that gold may drop from this level for correction and profit-taking purposes.
So, if gold drops from this level, it may test the $1830/1828 price zone. Breaking below $1828, it can test the $1823 price zone. However, I am not expecting more than that about this week. So, something doesn't happen unexpectedly, and I don't think gold will change its uptrend very soon.
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