Recently, the prices for gold and silver rose rapidly and reached the highest values for the last 12 months. Since the beginning of April, gold has risen by $52.4, and silver increased its value by 90 cents per troy ounce.
This increase occurred amid the negative economic data published on Tuesday in the U.S. The Labor Department reported a drop in job openings in February, which fell to its lowest level in two years.
This situation indicates a decrease in employers' need for personnel, especially since orders for U.S. manufacturing plants fell 0.7% in March.
The current economic situation may cause changes in U.S. monetary policy aimed to ease or pause the regular interest rate hikes.
This put pressure on the U.S. dollar index and lowered U.S. bond yields.
Expecting monetary policy easing, the U.S. economy has entered a phase of uncertainty. The situation could lead to a decrease in U.S. bond yields and increased pressure on the U.S. dollar index, which in turn could increase the demand for gold. Investors tend to put their money in safer assets, especially precious metals.
The gold price has consolidated to the psychological level of 2000.00, indicating the formation of a new rising range.
In terms of wave analysis, gold has entered an active growth phase. On the D1 timeframe, the price broke through the level of 1955.00 (top of the first wave), being in the third wave. On the H4 timeframe the price is also in the active phase of the third wave formation, after breaking through the level of 2009.95.
On the H1 timeframe the price came out from a symmetrical triangle, forming an impulse to the "north".
Taking into account the H4 timeframe signal, the price will tend to rise to the level of 2210, where the impulse may weaken its value facing the resistance at 2085.00.
Signal:
The medium-term prospects for gold are buying.
The target is at the level of 2210.00.
Part of the profit should be fixed near the level of 2085.00.
The stop-loss is at the level of 1930.50.
"Bullish" trend has a medium-term character, so the volume of trade should not exceed 1% of your balance.
This content is for informational purposes only and is not intended to be investing advice.
