Gold: Consolidation Likely
2022.04.15 15:06
Gold against the US dollar (XAU/USD) enjoyed three consecutive up days from Apr. 11 as Russia’s invasion of Ukraine dragged on with no end in sight and American non-core annual inflation reached a new 40-year high at 8.5%. Stock markets have generally retreated since Monday’s open.
This doesn’t seem like a perfect entry for buyers based on technicals. Still, greater intraday movements compared to the last fortnight on average mean more possible opportunities for daytraders and scalpers. With no key data coming up in the next few days, traders will focus on the war, projections for the Fed’s meeting next month, and the earnings season for major American shares.
Gold price chart.
ATR declining within an overbought and relatively low volume of buying would usually suggest that more gains from here are unfavorable in the near future. The 50 SMA seems to be a strong zone of support, so the range might start to shrink and move up between this dynamic support and the latest high, around $1,980.
