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.
.png?width=4920&name=Graph%20Template%20(34).png)
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?
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.
