The precious metal is up 2.4% in the last two sessions which situates gold very close to its 8 month high of $1,877.15, the pair might be able to break the resistance temporarily; however, we believe that a retracement will be in the door very soon. Tensions between Russia and Ukraine caused shares to slide and pushed investors to buy safe-haven bonds and gold.
The Bollinger bands are very wide which will bring high volatility in the upcoming trading sessions, the pair traded above the upper band, suggesting that the price is relatively high, a pullback is expected in the short term based on technical analysis, but gold could continue climbing as fundamental factors are pushing the price upwards.
The relative strength index is at 69% which is very close to reaching an overbought status, we might start to see a retracement in the short term as the pair is considered high at this point; however, we have seen gold stay overbought for a few sessions in the past.
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