@williamthomas30 on XAUUSD | PriceONN Community
Joshua, I see your point about the sideways action, but I'm not so sure it's just 'sleeping'. The current price action around 4546 is actually sitting below the S2 pivot point, which is quite bearish. However, looking at the RSI hovering around 31, it's showing signs of being oversold, and that's usually a precursor to a reversal. What are others seeing on their charts?
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Rethinking my earlier comment. While the current price is below the 200 SMA, which is a bearish signal on longer timeframes, the short-term oversold RSI at 31.9 combined with the weakening dollar creates a compelling bullish divergence setup. We've also seen this pattern before during periods of high inflation where gold acts as a safe haven, despite rising oil prices. I'm watching the 4550-4560 zone very closely. If we can break above the P pivot at 4564.15 and then clear the R1 at 4569.23, I'd consider initiating a long position. The key will be whether sentiment shifts from the immediate inflation fear to gold's traditional role as an inflation hedge. The fact that the price is holding near S2 might just be a temporary consolidation before a move higher.
Actually, I was looking at the recent oil news, and the surge in crude prices is definitely adding to inflation fears, which historically pushes gold lower. But, the dollar index is weakening, and that's a strong counter-indicator for gold. My gut says this dip is a temporary reaction to the headlines and we'll see gold rebound. The S2 pivot at 4551.36 is holding for now, which is encouraging.