The precious metal started an uptrend at the beginning of October, it has gained 8% since, and it just broke a resistance level at the 23.6% Fibonacci retracement. The price is expected to continue climbing amid inflation fears, the so-called safe-haven investment tends to rise when there is market uncertainty and inflationary risk.
The Bollinger bands are extremely wide and they continue to open upwards, a good signal that the uptrend will continue in the short term. The price trades closer to the upper band, if it reaches 1890 in the short term; we could likely see an important retracement.
The relative strength index is currently at 64%, fortunately for Gold, it has managed to stay overbought in the past and continue its upward trend, this happens when investors close other positions and buy gold to protect their investments in times where inflation is high and interest rates are expected to be raised.
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