Gold is rising softly 9/6/2022

Narrow sideways movements tended to the positivity that dominated the gold price movements during the previous trading session. Therefore, we adhered to intraday neutrality, explaining that consolidation above 1855 increases the possibility of touching 1865, so gold is satisfied with recording the highest price of 1860.

On the technical side today, the 50-day simple moving average started holding the price from below, and this comes in conjunction with gold prices gaining bullish momentum on the short time intervals.

From here and steadily intraday trading above 1844, there may be a possibility to continue rising gradually towards 1860, knowing that its breach is a condition to consolidate the gains. However, we are waiting for 1867.

The decline below 1844 postpones the chances of achieving the above-suggested scenario, and we witness a bearish tendency whose initial target is 1837. Therefore, please pay close attention and monitor the price behaviour of gold around this level because breaking it puts the price under strong negative pressure to visit the first bearish target 1828.

Note: ECB monetary policy statement and press conference are due today and may cause some volatility.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 1844.00	R1: 1860.00
S2: 1837.00	R2: 1867.00
S3: 1828.00	R3:  1875.00