Gold Bumps On The 1,835 Wall, Bullish Phase Still On The Wires

1. Gold Bumps On The 1,835 Wall,
Bullish Phase Still On The Wires

2. Points To Be Covered Today:
• Simple Moving Average (SMA)
• Gold Daily Chart
• Gold Technical Analysis
• Gold Price Back Towards The Supply Zone
• Gold Fundamental Overview
• Gold Analysis: Breaks Out Of Triangle
• XAU/USD

3. Simple Moving Average (SMA)
• Gold bulls saw their efforts falling apart
around the tough resistance of 1,835 on
Friday despite setting a solid foothold around
the 200-day simple moving average (SMA).
• The battle, however, is not over yet and the
precious metal could make more attempts for
an upside breakout beyond that ceiling as long
as the RSI continues to trend upwards above
its 50 neutral mark.

4. The Long-Term Downtrend
• The positive momentum in the MACD, which is
comfortably growing above its signal and zero lines for
the first time since April is adding to this narrative.
• A sustainable move above the 1,835 bar could push for
a close above the 1,870 restrictive region, though for
an outlook switch in the short-term picture, the bulls
will need to escape the 1,900 – 1,916 wall.
• Then, the next milestone on the road will be
the 1,959 peak, a break of which is required to
disconnect the long-term downtrend from the top of
2,079.

5. The Broken Descending Trendline
• On the downside, the 200-day SMA may
keep balancing selling pressures
around 1,808, while within breathing
distance.
• The broken descending trendline could
adopt a protective role within the 1,793 –
1,784 region along with the 20- and 50-
day SMAs.

6. The Broken Descending Trendline - I
• If the bears persist, the focus will shift to the
1,750 level, unless the dashed long-term
restrictive line comes to the rescue.
• Diving deeper, some consolidation could take
place around 1,717 before all the attention
turns to the 1,680 bottom.
• Failure to hold above the latter would bring
long-term bears back into play.

7. Gold Daily Chart

8. Gold Technical Analysis
• Despite the failure to cross a seven-week-old
horizontal hurdle, around $1,832-34, bullish
MACD and upward sloping Momentum line
back the recovery moves from the yearly low.
• Also favoring the gold buyers is the metal’s
sustained trading beyond the 200-DMA level
of $1,810, as well as a clear upside break of a
three-month-old descending trend line, now
support around $1,795.

9. Gold Technical Analysis - I
• It’s worth noting that the $1,800 add to the
downside filters whereas June’s low around
$1,750 becomes the key support past $1,795.
• Alternatively, a daily closing beyond $1,834
becomes necessary for the bulls to progress
towards the early June’s low near $1,856.
• However, any further upside will enable gold
buyers to aim for the $1,900 threshold and a
fresh three-month high beyond $1,916.

10. Gold Price Is Testing
• Gold price is testing the powerful defense line at
$1822, as it extends its pullback.
• That level is the confluence of the SMA10 four-
hour and Fibonacci 38.2% one-week.
• The next relevant cushion is seen at the
intersection of the SMA50 one-hour and
Fibonacci 61.8% one-day at $1819.
• Further south, the bears will challenge a dense
cluster of support levels around $1814, where
SMA100 one-day, pivot point one-day S1 and
Fibonacci 61.8% one-week meet.

11. Gold Price Back Towards The Supply
Zone
• On the flip side, the buying resurgence could
drive gold price back towards the $1827/29
supply zone, which is the convergence of the
Fibonacci 23.6% one-day, the previous high four-
hour and Fibonacci 23.6% one-week.
• The previous month’s high at $1832 could test
the bullish interests, above which the previous
day’s high and July tops at $1834 could be back in
focus.
• Buyers will then target the pivot point one-day R1
at $1838.

12. Gold Technical Overview

13. Gold Fundamental Overview
• Gold price is consolidating its retreat from two-month
highs of $1834, as the bulls continue to remain
hopeful, despite the impressive US dollar rebound and
the risk-on market mood.
• The change in expectations towards an extended
period of monetary policy support likely from the Fed
and China combined with looming covid concerns is
keeping the buoyant tone intact around gold price.
• Meanwhile, investors are taking profits off the table
after Friday’s $20 rally and ahead of this week’s ECB
monetary policy meeting.

14. Gold Fundamental Overview – I

15. Gold Analysis: Breaks Out Of Triangle
• The yellow metal broke out of the triangle
pattern. The move was caused by the worse
than forecast US employment data, which
caused an all-out drop of the USD.
• The following surge ended at the resistance
zone of the August high level at
1,830.00/1,835.00.

16. Gold Analysis: Breaks Out Of Triangle - I
• On Monday morning, the price had declined and found
support in the 1,825.00 level.
• If the price of the metal starts a decline, it could look
for support in the 1,820.00 level, which previously
provided resistance.
• Below the 1,820.00 level, the 55 and 100-hour simple
moving averages might provide additional support.
• On the other hand, a surge of the price most likely
would test the resistance of the 1,830.00/1,835.00
zone before making an attempt to reach the 1,850.00
level.

17. Gold Analysis: Breaks Out Of Triangle - II

18. XAU/USD

19. Us Dollar Basket (Dxy) Daily Price Chart

20. Thanks for listening
Gold Bumps On The 1,835
Wall, Bullish Phase Still On
The Wires

21. Gold Bumps On The 1,835 Wall,
Bullish Phase Still On The Wires