Gold has been trading higher since the end of February and the start of March, with the price climbing from the 1804 price area up to the current level of 1854.
This upward move was predominantly due to the weakness (wide consolidation) of the DXY and also due to the market anticipation for further interest rate hikes to come from the US.
Further interest rate hikes could create an unavoidable scenario of a global recession, hence the upward move in Gold prices.
As the price consolidates, a brief retracement to the downside could test the upward trendline and the support level of 1847. Beyond that support level, the next key support level is at the 1830 price level.
With Fed Chair Powell set to testify on Tuesday and Wednesday, volatility in Gold is likely to be significant.
I'd prefer to look for a continuation of the uptrend. Looking for the price to break above the 1860 price level and climb toward the next resistance level of 1870.
This upward move was predominantly due to the weakness (wide consolidation) of the DXY and also due to the market anticipation for further interest rate hikes to come from the US.
Further interest rate hikes could create an unavoidable scenario of a global recession, hence the upward move in Gold prices.
As the price consolidates, a brief retracement to the downside could test the upward trendline and the support level of 1847. Beyond that support level, the next key support level is at the 1830 price level.
With Fed Chair Powell set to testify on Tuesday and Wednesday, volatility in Gold is likely to be significant.
I'd prefer to look for a continuation of the uptrend. Looking for the price to break above the 1860 price level and climb toward the next resistance level of 1870.
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