Bullish in the long-term, but not so bullish in the short term

Despite our expectations for gold to continue slightly lower, it rebounded from around $1,940 to more than $2,000 per troy ounce. While this move is impressive, it is important to note that gold has been rising together with the stock market. As a result, we are again skeptical about its prospects of retaining the current price tag (especially if the stock market starts reversing from the current heights). With that said, we remain bullish on gold in the long term. However, we think gold will likely stay choppy in the foreseeable future.

Illustration 1.01

Illustration 1.01 portrays the daily chart of XAUUSD and simple support/resistance levels.

Technical analysis
Daily = Slightly bearish
Weekly = Neutral

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.