In the market, the precious metal is only getting more precious. The Gold has been trading dramatically bullish for the last three days. It has shifted more than 350 pips from $1252 to $1288 due to global uncertainties.
Trump's Double Standard Policy
Yesterday, the remarks from the President of United States diminished the interest rate hikes sentiments as he commented that the currency is getting too strong. He also voiced his intention to reappoint Janet Yellen, as he likes the low-interest rate policy.
This is surprising as earlier he accused China of currency devaluation, and he is now seemingly following in their footsteps. As a result, we have encountered major drops in the U.S dollar and huge gains in the Gold.
Easter's Affect On The Gold
Whenever we approach the holidays, investors switch their investments from the stock markets to the bullion. As a result, the stock market indices take a dip and bullion soars.
Lastly, the geopolitical tensions between the United States, Syria, North Korea, China, and Russia are playing their role in keeping the Gold bullish.
Gold – 4 Hourly Chart
The yellow metal Gold has crossed above another major resistance level of $1282 which is working as a support right now. In the 4 – hour chart, we can see the RSI and Stochastic, both showing that the Gold is trading in the overbought territory. Besides that, the huge gap between 50 periods EMA and the current Gold prices are sharing another bearish signal.
By the end of today, the Gold is very likely to form "Three White Soldiers" in the daily chart which represents a strong bullish trend. At the moment, the next target for the Gold seems to be $1307.