GOLD WEEKLY ANALYSIS –MAJOR SELL-OFF FADED THE GOLD’S GLITTER

This week represented the more significant sell-off in six weeks for the safe-haven yellow commodity. The precious metal losses its grips against market conditions that created the downward pressure on the market that brought the gold prices to its knees back to key support levels; only this week, the value of the precious metal dropped 3%.

From the technical point of view, gold’s price action broke the support level at 1,480 handles and tested the demand zone. The lack of a new higher high has brought the 20 EMA and 50 EMA to get close almost enough, forming a death-cross, but this bearish signal happened already in MACD with a death-cross confirmation this Wednesday. Stochastic is heading firmly toward the oversold area but still above the 20 levels.

It is well known that historically, the risk-appetite for a safe-haven fade when confronting a market sentiment with a strong dollar holding hands with a bullish stock market. On top of that, headlines talking about the rollback of tariffs in the phase-one trade deal created the catalyst sentiment that influenced the investors to move their assets, cutting-off the safe-haven and relished the risk opportunities of the current market outlook.

However, we could expect that the current market value could create perfect opportunities for investors to fall into the still bullish biased yellow metal market. Re-evaluation over the weekend, as always, to come clear-minded and ride the exciting trading week ahead.