The Reason Gold will get high as the Bitcoin

Beschrijving

March, Gold updated its high at $2,078.80 and then started a correction. Early in the new week of March week, the precious metal is trading at $1,977.

Gold is an excellent tool for investors to protect them from the consequences of increasing inflation, which is expected to continue rising for a while longer. It means that the fundamental support factor for Gold will remain in effect. The US inflation is at its 40-year high and there are barely any reasons for the indicator to go down.

The current decline in Gold is probably the result of profit-taking. Gold enthusiasts do not consider the strong USD factor, as they are supported by stable demand for the precious metal.

As we can see in the H4 chart, after completing the descending wave at 1958.50 along with the ascending impulse towards 1987.90, XAU/USD is forming a new consolidation range between these two levels. Possibly, the metal may break the range to the upside and grow with the first target at 2015.60. Later, the market may start a new decline to reach 1980.00. On the other hand, if the price breaks the above-mentioned range to the downside, the asset may resume trading downwards towards 1877.50. From the technical point of view, this scenario is confirmed by the Stochastic Oscillator: after breaking 50 to the upside, its signal line is expected to grow towards 80. Otherwise, the indicator may resume falling to reach 20.