Gold is trading higher on Wednesday despite an impending death cross – a bearish crossover of the 50- and 200-day Simple Moving Averages (SMA). The death cross is a long-term bearish indicator, according to technical analysis textbooks. However, it is based on backward-looking SMAs and lags price trends, often trapping traders on the wrong side of the market. Put simply, it is not a reliable indicator and has limited predictive prowess at best. The immediate bias remains neutral, with prices trapped in the recent $1,830 to $1,875 range. A break above the upper end (Jan. 21 and 29 high) would put the bulls back into the driver’s seat, exposing resistance at $1,959 (Jan. 6 high). A breakdown could bring in more selling pressure, yielding a drop to at least $1,800. At press time, gold is trading 0.30% higher on the day near $1,843. Prices fell over 1% to $1,829 on Tuesday. Daily chart Trend: Neutral Technical levels FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next RBA’s Lowe: Covid lockdowns have not been as damaging to consumption as first feared FX Street 1 year Gold is trading higher on Wednesday despite an impending death cross - a bearish crossover of the 50- and 200-day Simple Moving Averages (SMA). The death cross is a long-term bearish indicator, according to technical analysis textbooks. However, it is based on backward-looking SMAs and lags price trends, often trapping traders on the wrong side of the market. Put simply, it is not a reliable indicator and has limited predictive prowess at best. The immediate bias remains neutral, with prices trapped in the recent $1,830 to $1,875 range. A break above the upper end (Jan. 21 and 29 high) would… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
