Chart Analysis: Gold to Continue Recovery

A wise man once said “He who has the gold makes the rules”. With fundamentally uncertain factors such as the new Omicron variant and rising inflation rates, a surging Gold price should be anticipated, with investors looking to hedge their portfolios against a potentially nervous market.

Our Trading Idea in The Short-Term

As active traders we are seeking to take advantage of the situation.

Looking at the chart above, it is quickly determined that price seems to have found a bottom (blue box). From here we can look for potential setups to place our trade.

The favourable scenario would be for the price to break above the most recent intermediate highs (dashed line) and continue to our minimum target of $1845.61.

The alternative scenario sees the price to stall at $1813.69, once again – if so we would have to re-asses and determine whether we are dealing with a well respected resistance front or a potential fake move, which would see price initially bounce off the resistance level but then eventually break above the highs and continue to our target.

With all that in mind we will wait for a setup to develop according to our strategies and take action accordingly.

Disclaimer

The above only reflects the opinion of the author and must not be understood as financial advise. This article shall only serve as a source of information.