Is the bottom in? Gold could see a bullish correction, bouncing off $1,700 - Moor Analytics

7.22.22 - ECB raises rates for the first time in 11 years

Gold last traded at $1,721 an ounce. Silver at $18.52 an ounce.

News Summary: Precious metal prices jumped sharply higher Friday - set for weekly gain - on bargain hunting and safe-haven demand. Stocks mixed as investors continued to mull over latest corporate earnings.

Kitco--"Gold drop from its March highs at $2,000 an ounce did a lot of technical damage and pushed gold into a downtrend; however, according to one technical analyst, the precious metal could be on the verge of establishing a new short-term bull move.

In a recent interview with Kitco News, Michael Moor, founder of Moor Analytics, said that gold's consolidation of around $1,700 an ounce in recent days could indicate the market's bearish momentum has run its course.

He noted that gold has held critical technical exhaustion levels just below $1,700 an ounce.

'With this year's selloff, we have violated every bull trend, so where the market stands now, the bias is still bearish. Still, we could see a bullish correction in the near-term,' he said....

Moor also said that although gold has struggled through most of the year, it can still make a run back to the highs above $2,000 an ounce if $1,700 holds as support. He said the fundamental price to watch would be around $1,850 an ounce.

'If gold got above $1,850, that would take out another major bearish pattern and you'd already be above a bullish pattern. To me, that would signal that there is a good likelihood of this taking a run to the highs again,' he said."