After dropping below $1895 in late June, Gold reached today a high point above $1920. In just a few days buyers pushed prices higher with $25 per troy ounce. The yellow metal hasn’t traded for less than $1895 since March, so investors read those figures as being “cheap” and stepped in.
After retesting the previous high at $2070 in May, Gold lost more than $150 of its value. This correction could be catalyst so much needed for attracting even more buyers to break above the ATH. No rate hikes in the US last month and lower inflation readings are generally expected to weaken the USD, which is expected to have a positive impact on Gold. Certain countries’ central banks are increasing their gold bullion holdings which adds up to the demand. According to the weekly Alligator indicator, the asset is in an up trend, because the 3 moving averages are pointing north.
We also have to work our way down to the lower time frames, because they show us a different picture. The daily chart for example is starting to show a change in the Alligator and the 4H chart oscillators are indicating overbought conditions.
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