Although there are suggestions, primarily from the investing media, that Gold should be gearing up for a price drop, there is a clear uptrend developing for the price of the precious metal. A few factors look to be playing their part in making gold more attractive once again.
Gold prices recovered with a long green candle on Friday after a worse-than-expected jobs report. The worse-than-expected jobs number will stop any further talk about Fed tapering and send the USD lower for the rest of the month.
Thursday’s Gold price pullback was merely a reset of the RSI since Gold had been overbought, with the RSI at 76, having risen continuously since April. While many experts are starting to get bearish, I see the uptrend still intact and the rising channel still in play, explains PrimeXBT analyst Kim Chua
Gold could hit $1,950-$1,960 before we see the next pullback to around $1,900 which should it hold, may send Gold on its way to retest ATH of $2,070 sooner than we expect. The Gold market remains an interesting one to watch as the world continues to recover from the Covid-19 pandemic. Its potential to be a hedge in times where the Fed is heavily involved in the economy means it may be a lot more volatile than before.
The coming weeks will be interesting to watch in the Gold market as many expert’s opinions on this bearish trend are not predicated around the technical data which is currently pointing the other direction for the precious metal.
About Kim Chua, PrimeXBT Market Analyst:
Kim Chua is an institutional trading specialist with a track record of success that extends across leading banks including Deutsche Bank, China Merchants Bank, and more. Chua later launched a hedge fund that consistently achieved triple-digit returns for seven years. Chua is also an educator at heart who developed her own proprietary trading curriculum to pass her knowledge down to a new generation of analysts. Kim Chua actively follows both traditional and cryptocurrency markets closely and is eager to find future investment and trading opportunities as the two vastly different asset classes begin to converge.