Gold GC-Mini Market Analysis
The Gold GC-mini after dipping to a one-month low of nearly $4,400 earlier in February, surged back over $5,000 this week, driven by renewed geopolitical tensions and economic data. Gold prices received a boost on Friday when U.S. Q4 GDP data came in below expectations, reinforcing the appeal of gold as a hedge against economic slowdown. Gold prices rose significantly due to mounting tensions between the U.S. and Iran, including a massive U.S. military deployment near Iran, prompting investors to flock to safe-haven assets.
On Friday, Feb 20, gold jumped more than 1% after the U.S. Supreme Court struck down President Trump’s broad global tariffs. Despite the ruling, gold continued to rise as the White House threatened new, alternative trade restrictions, adding to market volatility.
Despite the recent volatility, some analysts are keeping very bullish, with BofA Securities suggesting a $6,000 per ounce target in the coming months.
The Weekly Gold chart
- Bulls get small follow through with weak bars.
- Bulls do a good job at closing above the psychological $5000 while unable to close a bar above $5100.
- The market is in a sideways to up bull channel.
- Overlapping bars and dojis are a signature of trading range behavior.
- This week’s bar has a large tail beneath showing that bulls are treating dips as pullbacks.
- Large gap maintained between price and the moving average.
- Bulls are still in control.
- Bears want to make a lower low to break market structure.
- Bulls want to hit the measured move target $5671.6 from the previous leg
- Bulls want to continue to demoralize bears by printing consecutive follow through bars.
- Bears have no clear sell signal, which would look like strong consecutive bear bars closing on their lows.
The Daily Gold chart
- Potential cup and handle pattern.
- Price hugging the moving average where it is being bought back up.
- Bulls are able to close bars above the 50% mark of the giant spike and correction, giving savvy bulls a break even on the giant range.
- Bulls want to continue the channel back to all time highs, relieving stuck bulls at the top.
- Bears want to close consecutive bear bars beneath the moving average.
- Bears want to protect the lower high and then print another lower low, which would flip the market structure to their advantage.
- The last 2 bars had big tails on top, showing bulls not eager to buy the top of the range.
- Bears able to prevent a higher high this week.
Market analysis reports archive
You can access all weekend reports on the Market Analysis page.
