Gold Price Analysis: Bulls Are Missing Out Again

FXOpen

Kitco is relaying an opinion on the price of gold from Karen Karniol-Tambour, co-chief investment officer at Bridgewater Associates:

→ Gold is undervalued.

→ Gold is supported by the tense geopolitical situation, including the military operations in Ukraine.

→ Inflation is volatile. There is a possibility that purchasing power will be lost.

It looks like a positive assessment should be taken as a long-term perspective, because so far the XAU/USD gold price chart shows a bearish trend.

In April-May 2023, the price of XAU/USD exceeded the level of USD 2,000 for the third time (the first was in the summer of 2020, the second in the spring of 2022). But, judging by the analysis of the chart, this time the bulls will not be able to stay above this psychological mark.

→ On candles 1 and 2 bears are powerfully absorbing bullish efforts.

→ A long upper shadow on May 4 (A) indicates a lot of supply.

→ The rebound in B→C is approximately 50% of the decline in A→B

Therefore, there is a growing possibility that the price of gold XAU/USD may fall to the lower border of the current channel (shown in blue).

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Start trading commodities with tight spreads. Open your trading account now or learn more about trading commodity CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Commodities

Market Analysis: WTI Oil Price Drops to Lowest Level Since July Market Analysis: Gold Price Retreats From Highs and Crude Oil Price Dives Market Analysis: Gold Falls from Record High by $100 in 1 Day Market Analysis: Today OPEC+ May Announce New Oil Production Cuts Market Analysis: Natural Gas Prices Fall to More than 2-month Lows

Latest articles

Forex Analysis

EUR/USD, GBP/USD, USD/JPY Analysis: Dollar Stable Despite Weak Employment Data

Yesterday, statistics from the United States on the dynamics of open vacancies from JOLTS were published. In October, their number decreased by 617.0k to 8.733 million, which turned out to be the lowest result since the beginning of

Forex Analysis

Will rate hikes end when 2023 ends?

Finally, after a seemingly endless period of interest rate increases by the US Federal Reserve over the past few years, there is some degree of inkling that the rate rises may come to an end at the end of this

Commodities

Market Analysis: WTI Oil Price Drops to Lowest Level Since July

As the chart shows, the price of a barrel of US crude oil dropped below 72.10 per barrel yesterday for the first time since July 2023. Fundamentally, this happened against the backdrop of: → Statistics showing that US oil exports

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.