Gold Prices have shown some considerable strength over the period of last 6 months. It has risen by more than 10% and if experts are to be believed, it is entering into a new growth phase due to lowering of Interest Rates across the globe, higher inflation outlook in the coming years and stagnant Gold prices in last 7 years which makes its attractive investment in Risk vs Reward matrix.
Charts Source: www.investing.com
On technical charts, the asset is gaining stronghold. Few indicators are being highlighted below:
Bollinger Band
On daily charts, the asset is consistently running above the median line in last 3 months which indicates strong and compelling buying by investors despite it gaining 10% over the same period.
Charts Source: www.investing.com
RSI
RSI is also at comfortable levels at 59 which indicates strong possibilities of gaining traction in the coming days. (Tip: RSI above 80 is an overbought zone and below 20 is an oversold zone)
Charts Source: www.investing.com
Breakdown of Key Resistance Levels
On daily, weekly & monthly charts, Gold prices have been breaking key resistance levels.
On daily chart, the resistance was placed at USD 1420 on a time period of 2 years. This has been broken last week and until Gold Price sustains above it, albeit with minor deviations, it is likely to run towards 1520-1540 USD levels.
Charts Source: www.investing.com
On weekly charts, there was a strong resistance at USD 1400. This has been broken during early June and since then it has been standing strong above it. Again a technical breakout!
Charts Source: www.investing.com
On Monthly charts as well, the chart has now broken a key resistance level of USD 1400. This marks the final confirmation of likelihood of a bull rally in Gold in the coming months which may take it to USD 1600 levels over a period of next 1 year.
Charts Source : www.investing.com
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