Gold’s gains are likely to be higher than a brand of $ 3000, as precious metal momentum indicators indicate that withdrawal may be imminent.
While recovering $ 3500 is still a major goal, gold has entered the level of distribution on the monthly relative force index (RSI) since February 2008.
RSI’s Gold has risen to 84.63, much higher than the 70 peak threshold, which represents its highest level since early 2008, just months before the metal witnessed a sharp correction in the global financial crisis.
It is worth noting, over the past two decades, the similar nails in the monthly relative power index have often characterized by medium to long -term design in the gold market.
The last gold momentum was driven by investors who turned towards safe assets of the vast market fluctuations that fed the uncertainty about commercial tariffs.
This climate has increased warnings from the market participants about a possible imminent stagnation.
Indeed, twice the gold appears, a decrease of 1 % at the time of the press to evaluate $ 3,283, although it still reaches 25 % years yet.
The current price sits above both the simple moving average for 50 days (SMA) of $ 3,127 and SMA for 200 days at a value of $ 2,828, indicating a constant trend.
The declining pattern of gold shapes
Meanwhile, veteran trader Peter Brandt suggested that the yellow metal could go for more losses.
In x mail On April 29, Brandt indicated that gold is a pattern of winding inside a descending triangle, where high levels of heights are created for horizontal support near the level of $ 3,300.
He pointed out that gold appears to be a continuous descending triangle, which is a declining pattern often.
Brandt also sees a strong similarity to preparing the 2013 weekly graph, which has previously collapsed and a long -standing declining course. If this analog is turned on, gold may violate the current support at about 3300 dollars and target $ 3,200 or less.
Flowing the moving averages, with a short -term font under the long term, supports more hybrid issue.
Unless the bulls retrieve the declining direction and pay above 3,350 dollars, the bias remains on the negative side. Any continuous declining feeling is possible to make gold to reach a standard level of $ 4,000 in 2025.
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