There has been a shift in gold over the last few weeks which had led to the precious metal pushing higher but the next distribution area looks like it could be a tough nut to crack, as FXStreet’s analyst Rajan Dhall notes.
Key quotes
“Previously the USD became the safe-haven asset of choice as a scramble of cash ensued. Now that moment has passed the reality is settling in and gold is soaring.”
“Looking closer at the weekly chart, the price has broken the last wave high at USD 1703.27. This is a great sign as there is now another higher high higher low printed.”
“The next major wave high is the line around $1800.00. Beyond that, the next major high is the line at $1912.14 and that one is the all-time high.
“The RSI is showing a bearish signal called divergence and this indicates the upside momentum might be slowing down. If you are long I don’t think it is a strong enough reason to close out your positions but it is just something to be aware of.”
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