The precious metals market has revived recently. One of the compelling reasons for the Gold price surge is the meltdown of a highly volatile cryptocurrency market. In this light, the leading precious metal has risen to $1883 by this Monday.
And if the first quarter of 2021 was pretty effective for cryptocurrencies and one of the worst for Gold over the last years, then the second quarter turned out to be the opposite.
More to that, the Gold price surge is not bothered by a new rally of the US 10-Year bond yield, which usually supports the USD and works against precious metals. However, this is not a factor right now as Gold is feeling just fine.
As we can see in the H4 chart, after completing the ascending wave at 1888.88, XAU/USD is consolidating below this level. Today, the metal may fall to reach 1854.30 and then resume moving upwards with the key target at 1900.00. After that, the instrument may start a new correction towards 1780.00. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is falling towards 0. In addition to that, there is a divergence that implies a breakout of this level to the downside and may lead to a correction in the price chart.
In the H1 chart, after finishing another ascending structure at 1889.00 along with the descending impulse towards 1870.00, XAU/USD has completed the correction to reach 1888.00, Possibly, the metal may resume falling to return to 1870.00 and even break it. In this case, the asset may continue trading downwards with the target at 1852.00. From the technical point of view, this scenario is confirmed by the Stochastic Oscillator: its signal is falling to break 50 and may later continue moving downwards to reach 20.
By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
Disclaimer
Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
- English (USA)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- English (Nigeria)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Português (Portugal)
- Polski
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
Bulls Reacquired Their Interest in Gold
Published 24/05/2021, 12:45
Updated 09/07/2023, 11:32
Bulls Reacquired Their Interest in Gold
Latest comments
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.