Baxia Markets
June 08, 2021

Gold recovers 1.6%, could it break the $1916 level?

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Gold can break the four-month high of $1916. The Bollinger bands are wide pointing up, indicating that an uptrend is likely to continue. The short and long-term moving averages continue expanding their distance, and the price still trades above them.


The relative strength index is at 63%. If the price continues rallying, we could see the RSI enter an overbought status that could start driving the price down, and this happened last week when the precious metal lost almost 2% in a signal session.


Gold June 7th 2021


Our parabolic SAR indicator suggests that the price will go down. However, this was influenced by Thursday losses of 1.95%, which allowed the pair to gather strength and bring RSI back from the overbought status


Other fundamental factors affect the price of gold as investors are anticipating higher inflation and possibly higher interest rates in the short term.


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precious metals, trading conditions, technical analysis, trading indicator

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