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.
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.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
