Gold Technical Analysis - Bullish

Let’s take a look at a wide variety of indicators for gold and see what they say. If all of these indicators aligning mean anything, then the saying “the trend is your friend” rings true.

A quick peek at our fundamentals here in Australia: The recent Australian jobs report came out much weaker than expected. After 20,000 new jobs were expected, we got an abysmal 2,000. Unemployment also rose to 4.3%, which is the worst it has been since COVID lockdowns were hitting the job market in 2021.

There was also a startling shift in job security and stability. The report showed that full-time jobs dumped by 38,200 and while part-time rose 40,200. Working multiple part-time jobs to make ends meet was not looked upon favourably by currency speculators, who immediately began shorting the Australian Dollar.

Gold Technical Analysis

On the daily candlestick chart, major moving averages as well as candlestick patterns appear to print buy signals. The price has been coiling up like a snake under the major resistance line in yellow. Let’s highlight some of major indicators and what they are saying at the time of writing, without drowning you in charts. I’ll highlight each indicator and whether it is a buy or sell signal:

RSI (14 candle): Neutral

Stochastic RSI (9,6): Buy

MACD (12,26): Buy

ADX (14): Buy

Williams %R: Buy

Ultimate Oscillator: Neutral

Moving average lines 10, 20, 50, 100, and 200: All Buy

The exponential moving averages (exponential essentially take more recent data into account more) 10, 20, 50, 100, and 200: All Buy

The hourly and weekly candlestick charts give almost the same exact readings as the daily.

Although this is an unusually high alignment of bullish indicators, remember that one speech could always derail markets. Aside from that, the most popular indicators are looking heavily skewed towards green today.