Trading | 6 months ago
The gold is known as one of the most crucial reserve assets worldwide. Recently the gold has seen a bullish set up and according to the latest price action developments in the gold price, there can be a good upside momentum in the gold.
On the last Thursday, gold (XAU/USD) rose by 1.58% and broke the resistance of $1745 level. After a small break out on Friday, gold (XAU/USD) rose by 0.73%. In the last week, gold rallied hard to touch the fresh two weeks high at $1770. The gold price benefited from multiple global factors Including sanctions imposed on Russia by the United States. Gold price was also supported by the hike in consumer prices and fall in United States bond yields.
Major central banks including the central Bank of Russia, the Hungarian Central Bank, Dutch Central Bank and other central banks have been aggressively accumulating gold bullion. Gold adds stability and diversification in the portfolio of financial institutions. That is why many financial institutions add gold to their reserves.
On the daily chart, XAU/USD is not in the overbought region. therefore, there is more room on the upside. Currently the gold is trading at $1777.180. One must look for short-term buying opportunities in gold as gold is trying to reach towards the $1800 price level which is an important psychological level.
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