GOLD : Gold's ability to increase is still there

3 мая

XAU/USD has met the minimum requirement to complete a bearish "Measured Move" pattern after reaching the 0.618 Fibonacci level of wave C at $2,286. This means that gold prices will likely go up in the near future.

This pattern is made up of three waves in a zig-zag pattern. The end of wave C, which is also the final wave, can be estimated based on the length of wave A and will usually be equal to the length of wave A or equal to the 0.681 Fibonacci ratio of wave A. If the price penetrates the 0.681 Fibonacci level At 2,285 USD, it is possible that wave C in this model will be equal to wave A and the target will be 2,245 USD or also the Fibonacci 1,000 threshold.

In general, the trend of gold prices is still increasing in both the medium and long term. If it successfully breaks through the cluster of SMA lines and the peak of wave B at around 2,350 USD, it could open a new price increase and XAU/USD could completely return to test the high of 2,400 USD.

However, the Fed did not forget to send the market a "hawkish" signal on the issue of inflation, specifically: "In recent months, there has been no significant progress towards the 2% inflation target. " This makes some investors concerned about the possibility of the Fed raising interest rates in the future, which could negatively affect gold prices.