Are Golden Bulls Tired? Senior Analyst Explains!

Gold prices began to lose altitude after reaching record highs. This brought to mind the question, 'Have we come to the end of the bull market for the yellow metal?' According to Kelvin Wong, Senior Market Analyst at OANDA, while gold has had a pair of disappointing days this week, the technical picture still points to further price gains for the precious metal.

Golden question for shiny metal!

As you can see from Kriptokoin.com, the shiny metal faced a sell-off after a strong rise. However, the shiny metal managed to stay above $2,300. Senior analyst Kelvin Wong points to the decline following a test of the $2,420 intermediate resistance. According to the analyst, this move shaped gold's average reversal decline. The price of the yellow metal fell by 2.7% on Monday, April 22. Thus, it had its worst daily performance since June 13, 2022.

Yesterday's intraday low of $2,291 represents a loss of 5.8% compared to spot gold's all-time high of $2,431 reached on April 12, Wong said. The analyst said, "Now, the golden question for gold; Can the bulls be revived or is the game over for the medium term rise trend that started in mid-February 2024?" he asks.

Kelvin Wong highlights several technical indicators that he believes support gold's medium term rise trend. These indicators start with the gold/copper ratio. According to this indicator, the analyst makes the following assessment:

This rate takes the U.S. dollar exchange rate effect out of the equation. This only measures the relative value of gold against copper, or its superior or low performance. The steady decline in the gold/copper ratio indicates that global economic growth is probably in expansionary mode. An increase in the gold/copper ratio means a slowdown in economic growth or a relative increase in demand for gold as a hedging due to uncertainties.

Wong says the Gold/Copper ratio has remained above support since late November. He also points out that it has remained within a major ascending channel since October 15, 2021. "Therefore, the current configuration of the rate suggests that there is still a relatively higher demand for gold as a hedge asset for stagflation risk," the analyst says.

There is another technical indicator that points to further gains for the precious metal. This is the 50-day moving average (MA), which continues to support the spot gold price. From a technical analysis point of view, Wong explains it this way:

Follow us on Twitter******,* Facebook* and* Instagram* and* Telegram and YouTube join our channel to stay up to date with breaking news!