Chart Situation Currently Ambiguous
The current pause in the rise of the gold price gives reason to reflect on the further direction.
The chart situation is currently ambivalent. The gold price has been above the blue upward trend line since the beginning of the year without interruption. For optimists, it even seems that a purple flag formation could be developing, which, if exceeded, would activate a technical price target of 3200 US dollars.
Both average lines are steadily rising, and the 100-day line is pleasingly running clearly above the 200-day line.
The MACD and the Stochastic indicator recently generated a sell signal and are both still far up in their respective indicator scales. In the Directional Movement Indicator, the blue line indicating trend strength has collapsed, but since the red line has not yet overcome the green one, there is still no sell signal. The Overbought/Oversold Indicator is already showing a more neutral stance, with a value of 0.4 again close to the neutral zero.
Viewed over the long term (here five years), the gold price often reacted with a significant decline or sideways consolidation when it was trading more than 10% above the green 200-day line.
