Baxia Markets
August 25, 2021

Could Gold break the $1,800 barrier?

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Gold started recovery after plunging to the $1,680 levels; the price managed to recover more than 7% in two weeks of trading but is now struggling to stay above the $ 1,800's.

The precious metal broke three resistance levels in less than ten sessions; the last break on the 50% Fibonacci retracement has not been consolidated as the price is fighting back. Currently, it's at $1,795, but we expect this breakout to be completed in the short term as our technical indicator suggests that the uptrend will resume.


Gold August 23rd 2021

The Bollinger bands are wide and steady; we expect medium to high volatility in the upcoming sessions. The price trades in between the bands, which suggests that it is at a fair price. The relative strength index is at 52%, which will allow the price to continue moving upwards; there is enough room for it to go to the low, perhaps mid $1,800.

The short and long-term moving averages have been crossing recently; current lines indicate a downtrend, but this factors in the last 20 and 40 sessions, respectively. The compounded average has much more weight on the aggressive downtrend in early August.


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