Weekly XAUUSD Chart
Gold has been running hot since hostilities began between Israel and Hamas on 7 October. In effect, the market is favouring it as a safe haven given the intricacies of the conflict and the danger that it may spread regionally. To this end, XAUUSD has broken above its green sloping downtrend line and its weekly RSI has popped above 50, which is the bullish side of the indicator. If the RSI maintains above 50, then the greater the likelihood that the yellow metal will have momentum support.
Daily XAUUSD Chart
Moving averages are trend-following indicators. Gold's green 20-day EMA has crossed above its orange 50-day EMA, and its orange 50-day EMA has crossed above its red 200-day EMA (black ellipse). This is a positive development and puts the trend-following indicators into a bullish formation. If they develop angle and separation, it will be considered a further bullish development with gold likely to be heading higher.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.