Gold – Long, Medium and Short Term Analysis

There is presently no excitement about gold.

Gold Monthly Chart

Take a look at the monthly chart:

Gold Monthly

Gold Monthly

First, look at the channel that has been formed over the past 20 months or so. Gold has continued to trend downwards within this channel. The ADX indicator is firmly bearish, with the -DI line above the +DI line.

However, the ADX line itself, has been working its way down from a strong trending reading above 50 back in 2011 to just 23 today, indicating that the tendency of gold to continue to trend downwards is diminishing.

The RSI indicator is bearish, hovering around 40.

The only positive sign, and it is only just positive, is the MACD where the MACD line has just managed to touch and cross over its signal line.

Overall, the monthly chart provides a bearish outlook for gold.

Gold Weekly Chart

Looking at the weekly chart:

Gold Weekly

Gold Weekly

You’ll see that the weekly chart is pretty similar to the monthly in its outlook. I don’t really see anything indicating a positive outlook for gold, except for the bullish wedge pattern that I’ve drawn on the chart. Two of the indicators, the RSI and the  ADX are bearish. The third, the MACD, looks like it is about to become bearish again.

Gold Daily Chart

What’s the daily chart show?

Gold Daily

Gold Daily

On the daily, all three indicators are presently bearish. The ADX line has turned down a little, indicating a slight weakening in the downward trend of gold.

There is resistance at 1214, and gold is also bumping up against the red downward trend line that I have drawn on the chart.

Summary

Considering the monthly, weekly, and daily charts above together, there is no real bullish outlook for gold at the present time. Investors are obviously looking elsewhere for places to put their funds. Of course, a geopolitical event could change that and help keep the price of gold up.

However, at present, it appears that gold will find it hard to keep its 1200 handle.

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