Apr. 30, 2021
While Gold is in a 8 day bullish trend, Today's session suggests a slow down, a mostly flat day for Gold as it ranged between $1,773.3 and $1,763.3 and closed at $1,768.8.
This in-between state for Gold is reflected by market data published as United States Pending Home Sales released earlier, shows an improvement to 1.9 from the preceding data of -11.5, but falls short of the projected five. The United States GDP beat expectations of 6.1 with the new data release of 6.4. This is also a step forward from the previous data of 4.3. United States Initial Jobless Claims released earlier showed an improvement to 553,000 from the preceding data of 566,000, but fell short of the projected 549,000.
In terms of trend indicators, we can see that at $1,769, Gold made an initial breakout below the 5 day Simple Moving Average, an indication of a negative trend. Asset volatility analysis shows that the upper Bollinger band is at $1,793.64, indicating a downward move might be next. Japanese Candlesticks formations detected today are the "bearish engulfing”, when it appears on top of a bullish overall trend, as it is now, some traders would consider this as an indication of a reversal, of course. On the other hand, note that Gold might start to recover soon because it is getting closer and is now only $27.4 from the support line at $1,741.4, Obviously, dipping below it could be an indication that further losses are ahead.
Overall, looking at all the technical indicators, it seems Gold might be pointing down in the short term.
While Gold was pretty flat today, mixed performances were seen elsewhere as The British Pound lost 138 pips (0.9%), making its largest single-day drop since September 2020. After 4 months, GBP/CAD falls below 1.71 levels.