Gold on fire – Bulls seems to dominate the market

Posted Monday, August 27, 2018 by
Arslan Butt • 1 min read

Gold prices edged up after marking their largest one-day percentage gain in over a year on Friday. Most of the bullish trend came in response to the U.S. dollar retracement on remarks from the Federal Reserve chair in support of a gradual approach to raising rates.

The Fed chair Jerome Powell supported the U.S. central bank’s intentions to hike interest rates despite President Donald Trump’s criticism of higher borrowing costs.

Gold - 240 Min Chart

Gold – 240 Min Chart

As you can see on the 4 – hour chart, gold has entered the overbought zone. The RSI is holding near 90, signaling a strong bullish trend in gold.

The immediate resistance prevails at $1,207 and the bullish breakout can lead gold prices towards $1,214. Whereas, gold can stay bearish below $1,207 until $1,199. I will be looking to take a buying position above $1,208 to target $1,212.

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