The bullion rose nicely on Thursday, but it erased most of those gains on Friday. It looks like the current short-term uptrend might be running out of steam, and a possible correction or consolidation might be ahead of us. 

Gold is now stuck at March highs at around 1,755 USD, and it needs a clear break above that level to confirm the short-term uptrend. However, the next major selling zone lies just a bit above – at 1,765 USD, where December lows are converged with May 2020 highs. 

Therefore, bulls are expected to have a hard time pushing the bullion through these zones. If they are successful, though, the medium-term outlook could turn bullish, targeting 1,800 USD.

Alternatively, if the bearish trend resumes, the supports could be seen near 1,735 USD (8+21 EMA convergence) and afterward near the 1,700 USD zone. 

Source: https://www.axiory.com/technical-analysis/gold-failing-near-previous-highs

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Peter Bukov

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

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