Due to Egypt matter, the world's investing atmosphere is shrinking. Stock markets as well as commodity market have been sliding. Gold reached 1338 last week and rebounded a bit. This time I would like to share my analysis on Gold (XAU).
Daily chart of gold price:
I have identified three major trendlines which could affect the price of gold now. This first one is the green one, which has been a support for the price in longer term. Gold price stayed above this line since 2009 and it remains a major support. So basically we could assume a very strong at the level suggested, which is around 1290.
This second line is the red line, which is a middle-term trendline. It has been a resistant in early stage, turned into support in middle stage and became resistant again after gold price broke it in mid-January 2011. It acts as a resistant to the price now.
The third line is the purple one, which is a short-term trendline. We can see that the price has been falling along this line since late December 2010. This would be a resistant to the price now as well.
Good news is MACD is currently touching its EMA, a bullish cross is under formation. We need two more days to confirm it. Bad news is the price did try to test the resistant zone yesterday but wasn't able to break it. It seems like the gold price would undergo a bit consolidation.
Let's check the weekly chart as well.
Weekly chart:
Basically the red and green lines are the same as that in daily chart. I have only made tiny adjustments on the slopes of them.
Clearly MACD is falling with no signal of reversing. We could expect no sharp reversal in price movements. The fibonacci retracement suggests a support at around 1295, which aligns with that given in daily chart.
To conclude with both charts, I would expect a slight consolidation in gold price. In daily chart, MACD and EMA might show good signals but it is hard to tell due to that in weekly chart. Support level is at around 1290-1300, and resistant is at around 1350-1360.
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