{"id":42829,"date":"2023-07-31T22:36:42","date_gmt":"2023-08-01T02:36:42","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/heres-what-to-watch-as-gold-attempts-a-comeback\/"},"modified":"2023-07-31T22:36:43","modified_gmt":"2023-08-01T02:36:43","slug":"heres-what-to-watch-as-gold-attempts-a-comeback","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=42829","title":{"rendered":"Here\u2019s What To Watch As Gold Attempts A Comeback"},"content":{"rendered":"
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In May and June, gold fell by approximately 8% from its peak as bonds sold off and higher interest rates started to bite. As I explained in my last update, gold\u2019s spring sell-off caused it to break down from a channel pattern that had formed since the fall of 2022. A channel break-down is usually a sign of further weakness ahead unless it is negated by a break back into the channel.<\/p>\n

At the moment, gold is attempting to re-test the lower portion of the channel. If gold can break back above, then that is a bullish sign. If gold bumps its head at the channel, however, then that would be another sign of weakness. It is also important to keep an eye on the $2,000 to $2,100 resistance zone that is just overhead. If gold can close above that zone in a convincing manner with high volume, then that would be a very bullish sign.<\/p>\n

The weekly gold chart makes it easier to see the importance of the $2,000 to $2,100 resistance zone that\u2019s overhead:<\/p>\n

The monthly chart of gold shows that it is still in a long-term uptrend because it is above the uptrend line that began in the early-2000s:<\/p>\n

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For now, it is important to see whether gold can negate its channel breakdown and if it can finally close above the $2,000 to $2,100 resistance zone. Regardless of shorter-term moves, I am quite bullish on gold in the longer-term due to the global economy\u2019s hopeless debt addiction that guarantees that more monetary stimulus (aka \u201cmoney printing\u201d) is ahead every time the economy stumbles.<\/p>\n

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