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.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.