Technical Analysis

Gold spikes higher as US impose visa bans on Chinese linked to Xinjiang abuses, but backs off

Treatment of Muslims in Xinjiang cited

The price of gold spiked a bit higher on headlines that the US won’t pose visa bans on Chinese link to XinJiang abuses of Muslims. 

The price move to new highs on the day $1509.66. The prices back down to around the $1505 area after the spike.

Looking at the hourly chart above, the high price fell short of a topside trend line that cuts across at $1512.28. It did move away from the 100 hour moving average at the $1502.19 level (bluel line on the chart above).  

Earlier today at the Asian session lows, the price created and retested a lower trendline. The low also tested a swing area around the $1487 area (the low today reached $1487.03).  That was a good bottom for the precious metal.  The price move higher.

The bounce off the support, moved above the 200 hour MA (green line) and 100 hour MA (blue line). The price action for the NY session has seen the price wander above and below the 100 hour moving average (at $1502.19), but not retest the 200 hour moving average at $1494.73.  

For now, staying above the 100 hour moving average keeps the bowls more in control, but there is upside work to be done in getting above the topside trend line at $1512.28.     

ForexLive

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