Gold's Gains Fade as Momentum Weakens

Published 02/20/2025, 03:25 AM

Gold

  • Gold (XAU/USD) edged higher but only as far as 2946.85
  • The gains could not be sustained and clearly Gold is losing momentum - there is some profit-taking or even shorting of Gold as we approach the psychological level of $3000.
  •  At this stage there is no sell signal but we have 2 Doji candles since 10 February plus a bearish engulfing candle on the daily chart.
  • This could be signaling that the rally is over for now and Gold will form a sideways consolidation.
  • I think this is the most likely scenario.
  • We will not know the parameters of the sideways consolidation for a while.
  • We must allow it to form.
  • If we can sustain a break above 2948 we could target 2956/58 and perhaps as far as 2962/64.
  • However, the recent pattern is for a new all-time high then for prices to pull lower so it could be difficult trying to trade an upside breakout.
  • Minor support at 2920/10 and longs need stops below 2905.
  • A break below 2905 is a short-term sell signal targeting 2895/90 for profit-taking.

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