Gold is Buying every dip / #2,027.80 High’s on the cards for FX:XAUUSD by goldenBear88

Gold’s general commentary: No surprises so far as rejection on #2,000.80 barrier level which is a big psychological benchmark for the cycle. This is a Technical pullback aswell to cool down Long-term Oversold levels and may precisely test the #1,952.80 benchmark or #1,962.80 – #1,972.80 pivot point , where Lower levels practicing strong durability and being unbroken since February #2. Gold continues to be tied to Bond Yields more than any other asset and soon though the two will form perfect diagonal correlation, which last time brought the December #15, #2021 Lower Low’s test near #1,752.80.

Fundamental analysis: Hourly 4 chart is still marginally Bullish as indicators makes much more sense to Buying (decent Buying potential). I am expecting #2,000.80 benchmark to be invalidated once again on one hit within #2-session horizon, unless #1,962.80 – #1,972.80 Support zone gives away (representing Higher High’s Upper zone), in which case I will await another Buying opportunity near #1,952.80 psychological benchmark. Not much Selling evidence to add a few Hours before U.S. market opens. Hourly 4 chart continues to provide strong Resistance near #2,000.80 – #2,005.80, and the longer it does, the more Neutral Gold becomes (Intra-day) towards the Hourly 4 chart’s first Support zone mentioned above. Price-action is still isolated within healthy Ascending Channel on Daily chart so I still view the Medium-term as slightly more Bullish than Bearish / Neutral towards the Higher High’s local Top’s area. Also note that the DX (# -0.22% Daily values) engaged relief rally towards local High’s and Gold seems to disregard this following more closely the Bond Yields movements. I will continue to operate with Buying orders, Buying every Low’s that Gold delivers. Keep in mind that current Technical structure is fueled by Golden Cross formed on Hourly 4 chart due Fundamental after-effect of multiple bank collapses and recession fears ( Gold in High demand). Interesting fact that Credit Suisse, bank which lost #7.8 billion USD last year, is being rescued by bank that lost #143 billion USD last year (Swiss National bank).

Technical analysis: Technically, there are only #2-sessions left before the symmetry of the Buying accumulation and it’s rally towards #2,000.80 psychological mark. However, there are new Fundamentals involded as last week’s bank collapse forecast results made the Bond Yields spike aggressively above the Daily chart’s Resistance zone , however Gold holding at the same time its’s Daily chart’s #MA50 widely below, while DX is on #2-session consecutive Selling run. This should be Bullish for Gold regarding Short-term if it continues to be the case, as (like I’ve mentioned numerous times on my remarks), Bond Yields are diagonally correlated with Gold ( DX on the other side remains rival asset which on Top of it’s High risk, offer an opportunity for Investors to buy Gold as Low risks). Technically, as long as #1,952.80 benchmark holds, Gold will more likely test the Daily chart’s Higher High’s peak (#2,000.80 configuration or above, former Resistance) as according to cyclical upside and observing how Price-action behaved in the past, every Fundamental upside tested #2,000.80 psychological benchmark ahead of ATH’s (virus parabola, Russia – Ukraine conflict and now, bank collapse and recession fears arise) . If it fails to Support Bullish structure though, the downside Gap is significant and extends all the way towards #1,852.80 – #1,900.80 Support zone . Personally, it is evident that Gold should extend the Bullish rally, however cyclical upside should test #2,000.80 – #2,027.80 Ultimate Top and then decide where to next.

My position: It is important to note that Gold soared (# +3.64%) for the session delivering #11-Month High’s on the aftermath. As banking crisis persists, Gold is a Buy option. I will look to either Buy Gold within my re-Buy zone or Buy within next few Hours ahead towards #2,027.80 local High’s extension.