Gold Technicals Bullish

July 10, 2023

by Adam Hamilton Zeal LLC

Gold’s latest pullback has left traders really down on it, fueling mounting bearishness and apathy. But that healthy selloff accomplished its mission of rebalancing sentiment, eradicating early May’s greed and overboughtness. That has reset gold’s technicals, leaving them very bullish. Hammered back down near major support zones, the yellow metal is nicely set up to start rallying soon and resume its interrupted upleg.

Today’s pessimistic gold psychology has been fueled by recent price action. Gold’s surged into early May, extending its latest upleg’s gains to a strong 26.3% over 7.2 months. But ever since then, gold has ground lower to sideways on balance. At worst last week, gold’s total pullback since its latest interim high grew to 6.9% over 1.8 months. Gold drooped from $2,050 to $1,908 in that span, really damaging sentiment.