Thursday's Market Minute: Gold Showing Little Directional Conviction

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.

Gold futures have given back most of the gains they’ve made in 2022 as technical indicators suggest range-bound trading may be in the cards going forward. The /GC contract recently broke to the downside from a trendline beginning off the lows near 1,678 in August, which was a disappointing development for goldbugs eager for more gains after February’s massive +15% run.

Major moving averages, such as the 21-Day, 63-Day, and 252-Day Exponential Moving Averages, are clustering together and trending sideways, which suggests a lack of directional bias for the yellow metal. Price now sits near the 21-Day EMA, currently around 1,856, and this indicator could continue to act as resistance going forward.

Momentum shows a mixed picture, with the MACD making a bullish crossover about a week and a half ago, while the RSI is still below the midline 50-mark which is more tilted toward the bearish side.

However, price did bounce off the yearly Volume Profile Point of Control, which is the area of heaviest trading, near 1,815, which is a key point to watch to the downside as this level has often been a congestion point during the past year. In terms of price action, look for support near the old lows around 1,785 and resistance at the recent highs near 1,865.

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.