Consequently, the current price is attempting to spike well above DMAs . While 7DMA crosses over 21DMA and also evidences crossover. For now, prices have been moving in tandem with the momentum and trend indications.
As a result, this setup has caused the bulls to resume the uptrend.
Please be noted that the strength in this commodity price after the strong test of support at 21EMA, on the flip side, bears in the intermediate terms resume exactly at resistance. The intermediate trend extends (refer weekly plotting).
The pattern has occurred at 1347.12 also on weekly terms that retrace 38.2% Fibonacci levels from the lows of 1046.23 (December 2015).
While curves pop up with the %k crossover to signal buying momentum. While has also been showing upward convergence to the prevailing price rallies.
To substantiate this stance, and DMAs also show crossovers that signal price rallies to extend further in the days to come.
Hence, long-term investors should wait and watch out closely for decisive breach below 1361.19 levels.
While aggressive traders could participate swing trades by entering trades using boundary binary options with the reasonable reward-to-risk ratio.
This would result in allowing you to participate in ongoing rallies but trading between restrained areas. Use upper strikes at 1361 and 1341.22 levels. The yields are certain as long as underlying spot gold prices remain between these two strikes.
Good ownership in front end Gold skews: With Gold front vols bound to remain firm for longer and as the late cycle Gold rally takes hold on the back of the post-Fed, Gold skews should stay supported even as 3M skews are at the highest level since Aug 2017. Positively skewed IVs of 2m tenor have been signifying the hedging sentiments for risks.
Accordingly, we recommend buying delta-hedged 3M XAUUSD 25-delta risk reversals @ 1.3/1.6 vol.