Technical Update - Gold in strong bullish trend but a correction looming. How deep can it go? Technical Update - Gold in strong bullish trend but a correction looming. How deep can it go? Technical Update - Gold in strong bullish trend but a correction looming. How deep can it go?

Technical Update - Gold in strong bullish trend but a correction looming. How deep can it go?

Commodities 2 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Gold could experience a correction down to 2,281 maybe even 2,230 before uptrend is likely to continue

Gold (XAUUSD)
has experienced a significant upward trend over the past eight weeks, with only a minor correction observed in mid-March. Yesterday, a Bearish Engulfing pattern emerged on both spot (XAUUSD) and the futures, strongly indicating a top adn reversal.

A correction could lead Gold to the 0.382 Fibonacci retracement level at $2,281 from the March bullish movement (blue Fibonacci levels).
However, a larger correction to the 0.618 retracement at $2,230 is possible, aligning closely with the 0.382 retracement of the broader uptrend since February's lows at $2,220, and stronger support level at $2,222.

Should Gold surpass its all-time high of around $2,365, this would indicate a continuation of the bullish trend.

The lack of RSI divergence (as RSI values are increasing alongside price) on both daily and weekly charts suggests that the current uptrend in Gold prices might not be over,  If Gold exceeds yesterday's peak, it could aim for $2,450

Source all charts and data: Saxo Group
Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
- Full disclaimer (https://www.home.saxo/en-mena/legal/disclaimer/saxo-disclaimer)


Boulevard Plaza, Tower 1, 30th floor, office 3002
Downtown, P.O. Box 33641 Dubai, UAE

Contact Saxo

Select region

UAE
UAE

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

Saxo Bank A/S is licensed by the Danish Financial Supervisory Authority and operates in the UAE under a representative office license issued by the Central bank of the UAE.

The content and material made available on this website and the linked sites are provided by Saxo Bank A/S. It is the sole responsibility of the recipient to ascertain the terms of and comply with any local laws or regulation to which they are subject.

The UAE Representative Office of Saxo Bank A/S markets the Saxo Bank A/S trading platform and the products offered by Saxo Bank A/S.