Gold buy

Symmetrical triangle on gold chart indicates soon resumption of upward movement

31 March 2023 184
Symmetrical triangle on gold chart indicates soon resumption of upward movement

The price of gold in the world markets is still staying around the $1,980 level, as investors are not expecting a rate hike in May. This level is a critical resistance, and it remains a significant interest for those who want to invest their money in profitable ways. Moreover, the precious metal is set to rise above Thursday's high of $1,1984.29, even though the dollar index showed some signals of recovery from the level of 102.00.

Meanwhile, traders expect the Federal Reserve (Fed) to keep its monetary policy unchanged in May. Despite Fed Chairman Jerome Powell's statements about a possible interest rate hike, the U.S. central bank's actions are not limited to his statements. In this regard, chances for stability in May are very high, which may confirm investors' interest in gold. If market participants expect stability and do not see risks in the market, they tend to invest in assets with a lower level of "anxiety," such as gold.

Today, the data relating to inflationary indicators will be released: the price index measuring personal consumption expenditures. There is a good chance that the indicators will stay at high levels, which will make the dollar go down.

From the graphic analysis point of view, the gold price is correcting in a symmetric triangle pattern on the H1 timeframe. This figure indicates the continuation of the previous trend after the price moves outside its limits. Since the price is contracting and the range is correspondingly decreasing, the purchase of gold at the completion of the symmetrical triangle is considered profitable in any case.

If we examine the gold price formation from the point of view of wave analysis on the D1 timeframe, the price is at the stage of forming the third ascending wave, after breaking through the level of 1955.00.

 Symmetrical triangle on gold chart indicates soon resumption of upward movement - Photo 1

The previous analysis remains relevant.

 

The signal:

The mid-term outlook for gold suggests buying

The target is at the level of 2065.00.

Part of the profit should be taken at the level of 2010.00.

A stop-loss is placed at the level of 1955.00.

 

The bullish trend is of medium-term, so it is worth to choose the trading volume of no more than 1% of one's balance.

This content is for informational purposes only and is not intended to be investing advice.

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