Gold broke four retracement levels in only six trading sessions after the FOMC statement was considered hawkish, and inflation fears slightly banished the precious metal lost its momentum.
The relative strength index reached 27% a few sessions ago, shortly after the price started going up and broke a resistance level at $1,768, which situated the price inside the Ichimoku cloud; this often indicates market uncertainty as buyers and sellers fight to keep the price moving in the desired direction.
Price will attempt to break a resistance level at $1,796; if it succeeds, the price is likely to continue moving up as that is our 50% Fibonacci retracement.
The price came down way more aggressively than expected. The Bollinger bands opened up very fast; the current price traded very close to the lower band, suggesting that the price is considered relatively low, we might see a slight recovery for the metal in the short term.
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