Could Gold Prices Maintain Its Uptrend After Treasuries Settle Lower?
Gold Prices Breaks Above $2,000 as Investors Seek Safe Havens
Market Overview – Gold Prices
Gold prices surged above $2,000 an ounce as investors sought safe havens amid growing concerns about the macroeconomic environment. The US debt ceiling issue remains unresolved, and with risk sentiment sinking, Treasury yields were lower across the curve. The US Dollar had a choppy week as traders weighed the potential impact of the Federal Open Market Committee (FOMC) meeting.
Wall Street finished down after regional banks faced scrutiny by the market. The KBW bank index, which includes several leading regional banks, went 4.47% lower on Tuesday. Despite this, the embattled First Republic Bank found a home with JP Morgan at the start of the week.
Gold Prices Technical Analysis
Gold prices remains within an ascending trend channel and has been caught in a relatively narrow range of $1,969 to $2,049 for five weeks. A bullish Triple Moving Average (TMA) formation requires the price to be above the short-term Simple Moving Average (SMA), the latter to be above the medium-term SMA, and the medium-term SMA to be above the long-term SMA. All SMAs also need to have a positive gradient. Looking at any combination of 10-, 34-, 55-, 100-, and 200-day SMAs, the criteria for a TMA have been met.
Double Top and Key Support Zone
To the topside, there is a Double Top created by the all-time high of $2,075 in April 2020 and the failed attempt to break above it in March 2022 when a peak of $2,070 was made. On the downside, the $1,885 to $1,895 area appears to be a key support zone. Within it lies the 100-day SMA, a previous low, a breakpoint, and an ascending trend line.