Kitco is relaying an opinion on the price of gold from Karen Karniol-Tambour, co-chief investment officer at Bridgewater Associates:
→ Gold is undervalued.
→ Gold is supported by the tense geopolitical situation, including the military operations in Ukraine.
→ Inflation is volatile. There is a possibility that purchasing power will be lost.
It looks like a positive assessment should be taken as a long-term perspective, because so far the XAU/USD gold price chart shows a bearish trend.
In April-May 2023, the price of XAU/USD exceeded the level of USD 2,000 for the third time (the first was in the summer of 2020, the second in the spring of 2022). But, judging by the analysis of the chart, this time the bulls will not be able to stay above this psychological mark.
→ On candles 1 and 2 bears are powerfully absorbing bullish efforts.
→ A long upper shadow on May 4 (A) indicates a lot of supply.
→ The rebound in B→C is approximately 50% of the decline in A→B
Therefore, there is a growing possibility that the price of gold XAU/USD may fall to the lower border of the current channel (shown in blue).
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