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Gold bulls trying to correct the bearish impulse

Gold prices are trying to correct higher following strong daily supply. The 4-hour environment is bullish while the price holds above support. The price suffered a strong blow to the downside for which has been corrected twice.

Gold prices consolidated on Tuesday following the long U.S. holiday weekend. The range was less than $12 per ounce as the world awaits the U.S. Presidential inauguration on Wednesday. The dollar moved lower, helping to buoy the yellow metal as U.S. yields took a hiatus from moving higher. Senate Majority Leader Mitch McConnell said that President Trump provoked the mob that stormed the Capitol earlier this month, casting blame on the violent attack president.

gold prices consolidated, holding just above an upward sloping trend line that comes in near 1,825. A close below this level would lead to a test of the November lows at 1,764. Short-term momentum has reversed and turned negative as the fast stochastic generated a crossover sell signal. The current reading on the fast stochastic is 18, below the oversold trigger level of 20. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) line generated a crossover sell signal. The MACD histogram is printing in the red with a downward sloping trajectory, which points to lower prices.