GOLD'S PRICE EDGES HIGHER.

Gold's edges higher after hitting the monthly support a few weeks ago.

The price of Gold has been rising ever since it crashed in early June, losing May's gain in less than two weeks. The crash in the price of Gold was a result of the FOMC meeting that was held in early June, when Fed Chairman, Jerome Powell made a statement about inflation edging higher. The price of Gold reacted to the statement as the US Dollar gained strength in the short term.

Gold price fell from 1910 to 1750 in less than three weeks. It reversed back from the monthly support at 1750 and never looked since then.

Technical Analysis

The price of Gold failed to make a lower low after hitting the support area at 1750. Price reacted from the support area and rallied back to 1810. It started to range (sideways), as seen on the 4-hour chart below. The price of Gold was trading between 1812 and 1794 before it broke to the upside last Wednesday.

Gold's price made a new high of 1830 for the first time in three weeks. Lower-high and higher-high sequence was created as the price went back to 1810 during the trading hours of Friday before the market closed.

Price is still holding above 1800 demand area as it has come to find support before it continues to rally. Price is expected to rise above 1830 in the coming week. Gold might get to 1910 in few weeks.

A higher-high and lower-high sequence indicates the start of an uptrend. And, this might just be the start of another uptrend on GOLD.

Furthermore, the non-commercials added more long positions on Gold according to the Commitment of Traders Report, which was published on Friday.