- Gold is trading 0.26% lower but the critical support level is still holding.
- Volume has been light today as the US markets are closed due to a public holiday.
Gold 4-hour chart
Today has been a slow session as the US markets are closed due to labor day. Despite this, there are some technical set-ups that need to be watched if you are interested in the yellow metal. The market seems to be in limbo after the long uptrend and with this month’s FOMC meeting being a “live” one a break of the technical levels could give us clues to the future trajectory of the metal.
Elliott Wave practitioners will be looking at this current pattern waiting to see if the price breaks the wave low of USD 1863.24 per troy ounce. This could mean that the current wave is the long wave 3. At the moment the issue for that theory is the current support at red line near USD 1925.00 per ounce. This bearish view would be invalidated if the black resistance line just below USD 2K per ounce is broken. Then the bulls would surely be in charge and another test of the highs or a possible extension might be on the cards.
The indicators also look like they are turning higher at the moment. The MACD histogram bars are diminishing in size and there has been a bullish cross of the MACD signal lines. The signal lines remain under the mid-level and the bulls would like to see a bullish cross. The Relative Strength Index is still under the 50 midpoint but looks like it might be recovering. It has recently moved off the oversold line and has started to slope higher.
Overall, the metal is still in an uptrend, this is just a consolidation phase but a break of USD 2K per ounce would be a good confirmation that the bulls are still in charge.