The precious metals market has revived recently. One of the compelling reasons for the gold price surge is the meltdown of a highly volatile cryptocurrency market. In this light, the leading precious metal has risen to $1883 by this Monday.
And if the first quarter of 2021 was pretty effective for cryptocurrencies and one of the worst for gold over the last years, then the second quarter turned out to be the opposite.
More to that, the gold price surge is not bothered by a new rally of the US 10-year bond yield, which usually supports the USD and works against precious metals. However, this is not a factor right now as Gold is feeling just fine.
As we can see in the H4 chart, after completing the ascending wave at 1888.88, XAU/USD is consolidating below this level. Today, the metal may fall to reach 1854.30 and then resume moving upwards with the key target at 1900.00. After that, the instrument may start a new correction towards 1780.00. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is falling towards 0. In addition to that, there is a divergence that implies a breakout of this level to the downside and may lead to a correction in the price chart.
In the H1 chart, after finishing another ascending structure at 1889.00 along with the descending impulse towards 1870.00, XAU/USD has completed the correction to reach 1888.00, Possibly, the metal may resume falling to return to 1870.00 and even break it. In this case, the asset may continue trading downwards with the target at 1852.00. From the technical point of view, this scenario is confirmed by the Stochastic Oscillator: its signal is falling to break 50 and may later continue moving downwards to reach 20.
Disclaimer: Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
Bulls Reacquired Their Interest In Gold
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