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Analysis

Chart of the week – Gold gets a lift off from risk off

gold

Chart of the week – Gold (cash)

Gold gets a lift off from risk off 

Short-term technical analysis (1 to 3 weeks)

(click to enlarge chart)

Time stamped: 12 Jun 2022 at 12:00pm SGT

Source: CMC Markets

  • In the past week, global equities have wobbled where the major US stock indices, the S&P 500 and Nasdaq 100 recorded weekly losses of -5.06% and -5.70% respectively; their worst weekly performances since 18 January 2022.
  • In contrast, Gold has outperformed against equities during last week’s risk-off environment, it recorded a weekly gain of +1.07% and an accumulated return of +4.7% from its 16 May 2022 low of 1,786.
  • Integrated technical analysis (price actions, momentum & Elliot Wave/fractals) suggests that a potential medium-term inflection low point for Gold (cash) may have materialised on 16 May 2022, and it is likely to stage a further potential impulsive up move sequence in the next 1 to 3 weeks within its major range configuration in place since August 2020 high of 2,075.
  • Bullish bias above 1,825 key medium-term pivotal support and a break above 1,894 upside trigger level is likely to reinforce a further potential up move towards the next resistances at 1,960 and 1,998/2004 next. 
  • On the flipside side, a break with a 4-hour close below 1,825 invalidates the bullish scenario for another round of choppy decline to retest the 7/27 January 2022 swing low areas of 1,780.
  • Positive elements; the recent past 4 weeks of price actions seen in Gold (cash) has reintegrated back above its 100-week moving average and the pull-back support of a former descending resistance from 9 November 2020 high, daily RSI oscillator has just broken above its 50% level after it hit an oversold condition on 13 May 2022 which indicates a revival of medium-term upside momentum.


Disclaimer: CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.

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