Quoted from Bloomberg
Bullion has climbed 8 percent this year as a weaker dollar combined with investor concerns over Trump’s presidency. Gold’s rally this week took it above its 100-day moving average, a sign to some traders and analysts who study chart patterns that prices may rise further.
Traders are “seeking some safety in gold,” Jeffrey Nichols, a senior economic adviser to Rosland Capital, said in a telephone interview. “Initially the market thought Trump would be a big plus in terms of corporate profitability with a reduction in regulations and a more positive attitude toward big business. Now some are starting to change their minds.”
“The momentum is behind gold at the moment,” Bernard Sin, head of precious metals trading at refiner MKS (Switzerland) SA, said by phone from Geneva. “The trend from a technical perspective is healthy and there is a lot of demand globally.”
Bullion has climbed 8 percent this year as a weaker dollar combined with investor concerns over Trump’s presidency. Gold’s rally this week took it above its 100-day moving average, a sign to some traders and analysts who study chart patterns that prices may rise further.
Traders are “seeking some safety in gold,” Jeffrey Nichols, a senior economic adviser to Rosland Capital, said in a telephone interview. “Initially the market thought Trump would be a big plus in terms of corporate profitability with a reduction in regulations and a more positive attitude toward big business. Now some are starting to change their minds.”
“The momentum is behind gold at the moment,” Bernard Sin, head of precious metals trading at refiner MKS (Switzerland) SA, said by phone from Geneva. “The trend from a technical perspective is healthy and there is a lot of demand globally.”
Taking the highest point before the drop as Point X, I am starting to see a bearish bat pattern forming.
XAUUSD might rally for another $65, I will keep this pattern in view.
Harmonic patterns that complete on daily charts are usually very strong.