Gold returned to the main support of the post-covid era. The 1675 support has been holding the down moves since April 2020. Now it is in the spotlight again. Many fundamental models based on the bonds market predict a major break to below the 1500s. But the Ukraine conflict, recession, or stagflation risks were holding the gold.
Despite the downward pressure, the 1675 support is extra strong and RSI is in the oversold territory. All five of the time when RSI signaled oversold gold, a short correction or a medium-term uptrend had started. Because of the major support and the buy signal from the RSI, gold might be at an optimal buying zone. But this time the fundamental side is showing the other way. The long-term bond rates and inflation expectations are giving a major sell signal while ETH’s gold holdings decreased 15 days in a row. Whatever a break happens or not, a start of a trend is a high possibility from the 1675 support.
