Reversal in USD pushes Gold high

GOLD started declining in MARCH and recently made a low at 1682. It’s the third time that this level has provided support to GOLD. However, the main question is “IS IT THE BULLISH REVERSAL OR JUST A RELIEF RALLY”

Based on the weekly chart analysis, if we consider Fib retracement from the swing low at 1044 and high at 2082 then the 50% retracement is expected to take it lower towards 1558.

Bullish divergence on the daily and 4 hourly charts has come into play and pushed the prices higher from the key level of 1682.

If we plot the Fib retracement from the swing high at 2082 and low at 1682 then the 50% pullback level is 1876.

So based on the latest bullish bounce due to divergence, we can expect it to reach the resistance zone from 1835-1875

Until it stays above 1710, the short-term view remains bullish. And once it reaches the above-mentioned resistance zone, we can expect the continuation lower, in the long run, to complete its retracement up to 50% of the previous bullish cycle.

Gold Weekly Chart - 02.08.2022