Baxia Markets
May 25, 2021

GOLD, The New Kid On The Block

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Gold continues its overall uptrend and finds a new high in almost 5 months. The last time gold was trading at this level was back in early January 2021.


We can expect the price to continue climbing in the long term, however, the relative strength index is currently overbought at 73%, which is why we believe that the precious metal could find a pullback in the short term. A pullback would allow the RSI to come back from the oversold state and regain strength for the future uptrend continuity. 


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The Bollinger bands are extremely wide, indicating that volatility should be very high in the upcoming sessions. The precious metal is on an 8 day winning streak which could come to an abrupt end very soon, at least temporarily. 


Other fundamental factors can also affect the price of gold. Inflation speculations and higher interest rates expectations are scaring investors away from other financial  instruments and pushing them back to gold as it is well known to be a safe haven in times of market uncertainty. Are you ready to stack the gold bricks under your bed?


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