The precious metal delivered high volatility in the last two trading sessions as many investors continue to open positions in the so-called safe haven after US securities closed with a loss in the previous session. The price managed to break three resistance levels at our 61.8%, 50%, and 38.2% Fibonacci retracements.
The Bollinger bands are narrow and they are closing, which will likely bring lower volatility in the short term, the bands are moving up which indicates an upward trend, but the pair trades closer to the upper band which suggests that the price is relatively high, we might continue to see a spike in the precious metal price in the short term.
The relative strength index is at 57% which will allow the metal to continue moving up for some time, once it reaches the overbought status at 70% we might see a correction. Our parabolic SAR indicator suggests that the price will fall in the short term, but the price is currently trading above our short and long-term moving average, which indicates an uptrend.
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