FXTM

Gold is propelled to capture higher grounds

OANDA:XAUUSD   Gold Spot / U.S. Dollar
Gold precious metal on the Daily Chart has been in an uptrend since 2 May 2019 when it registered the low price at 1266.389. Subsequently, the price displayed a series of higher tops and higher bottoms. On 21 June 2019, Gold precious metal recorded the high price of 1411.993. Applying Oscillator Analysis on the price chart, one can notice that price is trading above the SMA 60 period Moving Average line, a fact that confirms the upward direction of Gold. Furthermore, the MACD (Moving Average/Convergence Divergence) Oscillator is recording values above the zero line which hints to the bullish bias of the financial instrument. Additionally, the RSI (Relative Strength Index) Oscillator registers values in the overbought zone after an increase in buying and excess of net gain. All three technical indicators are in agreement for the upward bias of the financial instrument. Applying the Fibonacci tool on the price chart, three price targets may be calculated. The first price target is estimated at 1365.648 (161.8%). The second price target is seen at 1393.861 (261.8%). The third price target is projected at 1439.509 (423.6%). The first and second targets were reached successfully. Current price is 4.77 % above the last week close after a sharp rise in price during a period of heavy buying. The Gold is currently trading above the uptrend line. The presence of the Long White Body hints for a potential rally to the upside. Of course, supply and demand as well as the crowd sentiment will determine the course of Gold.

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