XAUUSD has been on a downtrend for the last three trading sessions, losing 2.01%. The price broke the support level in our 23.6%. Fibonacci Retracement, but it did not consolidate the breakout; this allowed gold to recover some of that lost ground.
The relative strength index dropped to 48%, which will allow gold to continue its general uptrend in the short term if the support is strong enough to hold. Bollinger bands got very narrow during the weekend, but they are starting to open up, allowing higher movements on the price.
The price now trades at $1,863 after US equities started performing better and traders easing inflation speculations. Gold is known as a safe haven for traders. It tends to go up when there is uncertainty in the markets and the US equities are not performing well.
We have to wait and see how much the price retraces before suggesting a direction this time.
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