The precious metal continues the uptrend as more investors look for a safe haven investment during the uncertain times brought by the Russian invasion of Ukraine. The pair reached its highest level since August 2020.
The Bollinger bands are very wide and high volatility will continue, the upper band is opening more aggressively which is allowing the pair to continue rising, however, the price trades above the upper band, suggesting that the price is relatively high at this point, but with current circumstances, these technical indicators will not be as effective as in normal conditions.
The relative strength index is at 78% which is an overbought status, we have seen gold stay overbought for a few weeks in the past, we would likely see the price drop until the situation in Ukraine stabilizes. The price could continue rising despite the technical signals that indicate otherwise.
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