Analyst John Isıge wrote an article today stating that Gold is strongly preparing for the next week. Isıge includes the following statements in his comments. Gold is testing a critical resistance level to make a big move towards the $ 2,000 level. If the XAU / USD parity goes below the middle limit of the descending parallel channel, the bullish outlook may be troubled.
Increase Expectation in Gold Price
Gold recently had a slight support at $ 1,760 after a significant drop due to seller congestion at $ 1,950. The world’s most precious metal closed the week for just under $ 1,850. The market is expecting a major recovery price movement, especially if the XAU / USD pair closes one day above $ 1,950.
Gold Preparing for a Comprehensive Rise
XAU / USD is holding in a decreasing parallel channel. The lower bound played an important role in shaping the current recovery. Gold appears to be trading at the middle boundary. If this level is converted to support, the price will embark on a journey to break the barriers. On the other hand, some lag is expected at the 50 Simple Moving Average and 100 SMA. However, a break beyond the upper limit of the channel will throw Gold to price levels around $ 2,050. The bullish outlook will be confirmed by the break above the Relative Strength Index, a move that may require more buy orders. It is worth noting that if the price does not stay above the middle limit of the channel, the enormous uptrend of Gold will be invalid.
Also, if the losses come below the 200 SMA, the XAU / USD rate may continue its four-month downtrend.
