After one of the best weeks gold has had in a long time, overbought levels achieved even on weekly time frame.
Now technicals on 4 hour show divergence on both MACD and RSI, potential signal of a double top forming. Target retracement back to broken level between 1440/1450. Also in line with 61.8% fib level. 200SMA also getting closer to that level, so should be in line. Short option here on the impulsive break of the neckline.
Fundamentally investors went straight to gold after trade war escalation with new tariffs and China not backing down. If we see indices bouncing back to the highs in the coming week, then gold should start the correction. So watch for trade war news. Good Luck!
Now technicals on 4 hour show divergence on both MACD and RSI, potential signal of a double top forming. Target retracement back to broken level between 1440/1450. Also in line with 61.8% fib level. 200SMA also getting closer to that level, so should be in line. Short option here on the impulsive break of the neckline.
Fundamentally investors went straight to gold after trade war escalation with new tariffs and China not backing down. If we see indices bouncing back to the highs in the coming week, then gold should start the correction. So watch for trade war news. Good Luck!